LIBRARY 

OF  THE 

University  of  California. 

Class 

« 

''*'=^:Mj 

FARM  ACCOUNTING 


-FOR- 


The  PRACTICAL  FARMER 


—  BY- 
LLOYD  E.  GOODYEAR 


1911 

Goodybar-Marshall  Publishing  Co. 

Cedar  Rapids,  Iowa 


tUHQ 


Copyright,   1911. 
Goodyear-Marshall  Publishing  Company. 


Farm  Accounting. 


The  farm  is  a  factory  in  which  thought,  money,  and  labor  are  applied  to  soil  and  natural 
forces  in  order  to  combine  them  into  produce  for  consumption.  So  long  has  mankind  been 
engaged  in  farming  that  many  of  its  processes  can  be  followed  by  persons  with  very  little 
conscious  learning,  and  with  no  account  keeping,  just  as  in  former  times,  it  was  easy  to 
secure  game  with  a  simple  bow  and  arrow.  The  fact  that  a  certain  amount  of  farming  suc- 
cess can  be  attained  without  bookkeeping,  has  made  the  farm  the  one  kind  of  factory  where 
bookkeeping  has  not  in  the  past  been  universally  deemed  necessary.  Other  factories,  un- 
less quite  small,  can  no  longer  run  successfully  without  careful  attention  to  accounts.  The 
larger  the  establishement  the  greater  the  need  of  bookkeeping,  until  we  reach  the  great  iron 
works,  wood  works,  machinery  works,  clothing  works,  etc., 'where,  if  the  books  were  not 
kept  for  a  single  day,  confusion  would  reign,  and  where  if  books  were  not  kept  for  a  single 
month,  dissolution  would  set  in. 

At  the  present  time,  we  are  beginning  to  witness  the  coming  of  men  skilled  in  account- 
ing, who  have  applied  their  skill  to  the  farm  with  the  result  that  large  farm  chains  are  be- 
ing organized,  replacing  the  many  small  farms  which  are  not  safeguarded  by  a  scientific 
system  of  accounting.  Those  who  think  clearly  cannot  fail  to  see  that  a  proper  accounting 
system  reduces  the  labor  and  mental  strain  of  the  prosperous  farmer,  while  the  farmer  who 
is  still  struggling  with  large  payments  and  small  income,  must  depend  on  account  keeping 
until  his  books  have  guided  him  to  at  least  a  comfortable  degree  of  success.  One  must  get 
the  account  keeping  attitude  now-a-days,  if  he  would  master  his  business. 

The  stories  of  the  successes  of  our  fore'fathers  in  subduing  the  wilderness  with  their 
vast  physical  energy,  like  the  stories  of  knighthood  in  the  middle  ages,  should  contribute 
the  qualities  of  heroism  and  chivalry  to  the  sons.  But  the  sons  cannot  make  any  eminent 
success  in  business  today  unless  they  add  to  their  forefathers'  vigor,  the  incisive  judgment 
and  adaptability  to  surroundings  demanded  by  present  commercial  development.  The  mod- 
ern guide  to  success  is  the  intelligently  kept  ledger;  the  modern  consultation  room  is  the 
bookkeeper's  desk.  The  proper  study  of  accounts  will  do  much  to  restore  to  the  farmer  the 
primary  standing  which  has  been  usurped  by  other  masters  of  business  where  bookkeeping 
is  more  highly  specialized. 

This  set  may  be  classed  as  belonging  to  advanced  accounting  in  the  sense  that  it  is  a 
complete  scientific  scheme  of  accounting  equal  in  grade  with  that  used  by  the  banker  or  mer- 
chant. In  operation  it  is  simple  and  should  not,  on  an  ordinary  farm,  require  more  than  five  or 
ten  minutes  per  day  for  its  successful  use.  The  principles  given  are  to  be  thoroughly  mas- 
tered but  when  once  mastered  they  should  be  adequate  to  future  needs. 

We  hope  to  see  in  time  to  come  the  evidences  of  well  kept  books  in  the  material  pros- 
perity of  the  thousands  of  farms  that  adorn  the  thorofares  East,  West,  North,  and  South. 

217131 


FARM  ACCOUNTING 


PREPARATION 

It  is  assumed  at  the  outset  that  the  student  is  famihar  with  ordinary  business  papers  and 
legal  forms.  Among  these  are  included  the  note,  check,  draft,  receipt,  bill  or  invoice,  bank 
book,  deposit  ticket,  statement  ot  account,  duplicate  order  and  other  carbon  duplications,  let- 
ter, envelope,  R.  R.  bill  of  lading,  R.  R.  expense  bill,  stock  certificate,  telegram,  C.  O.  D. 
form,  lease,  common  agreement,  bill  of  sale,  deed,  mortgage,  release  of  mortgage,  insurance 
policy,  proof  of  loss,  etc.  There  are  few,  if  any,  general  business  forms  that  will  require  par- 
ticular attention  in  a  study  of  this  kind. 

In  bookkeeping  the  student  is  expected  to  know  the  double  entry  principle  and  to  use 
it  in  the  common  books  of  original  entry,  together  with  posting,  trial  balance  and  financial 
statement.  It  is  desirable  that  he  be  able  to  introduce  special  columns  where  needed.  Some 
review  in  the  methods  of  transferring  department  statistics  to  general  accounts  would  also 
be  in  order.  These  matters  can  be  gathered  from  the  general  treatment  in  this  set  but  its 
practical  value  would  be  enhanced  if  the  attention  is  not  diverted  from  the  problem  actually 
in  hand, 

OBJECT 

The  objects  to  be  emphasized  in  this  set  are  (1)  an  exhibit  of  the  cost  of  producing  each 
of  the  farm  products,  (2)  the  returns  derived  from  their  sale  or  use,  (3)  the  general  value 
and  progress  of  the  business.  These  facts  should  be  placed  in  such  form  as  to  render 
convenient  comparison  from  year  to  year. 

THE  LEDGER 

This  book  is  divided  into  two  parts — the  first,  for  general  accounts,  including  an  account 
with  each  department  of  farm  industry  considered ;  the  second,  including  accounts  with  notes 
and  persons.  It  should  be  a  book  large  enough  and  well  enough  bound  to  last  on  an 
ordinary  farm  for  a  period  of  ten  years.  The  standard  double  entry  ledger  ruling  is  used, 
as  the  explanation  column  in  it  allows  room  for  the  memoranda  that  should  accompany  prac- 
tically all  entries. 

TRIAL  BALANCE  BOOK 

A  continuous  trial  balance  (one  with  titles  to  the  left  and  several  sets  of  debit  and  credit 
columns  for  successive  trial  balances  to  the  right)  is  used,  in  which  are  recorded  the  trial 
balances  taken  on  opening  the  books  and  thereafter  on  the  last  date  of  each  month. 

JOURNAL 

A  six-column  journal  is  used  for  all  current  entries.  This  book  has  special  debit  and 
credit  columns  for  cash  receipts  and  payments,  also  merchandise  cost  and  returns.  (It  will 
be  noted  that  the  Merchandise  account  represents  all  finished  product  in  marketable  condi- 
tion.) The  journal  also  holds  the  distribution  of  labor,  team  use,  and  product.  These  items 
are  summarized  monthly  and  charged  or  credited  through  the  journal  to  the  departments 
affected. 

SUMMARY  BOOKS 

The  essential  summary  books  are  three  in  number :  One  having  columns  each  for  every 
department  requiring  manual  labor,  called  the  Labor  Summary;  one  having  columns  for  the 
departments  requiring  the  use  of  teams,  called  Team  Use  Summary;  and  one  having  col- 
umns for  each  division  of  production  having  regular  output,  called  Product  Summary.  Each 
of  these  books  has  a  miscellaneous  column  for  entries  of  unusual  labor  service,  team  service, 
or  source  of  product. 

The  distribution  of  above  essentials  is  made  daily  in  the  summary  books.  The  daily 
items  are  footed  monthly  and  carried  to  the  led^^er  accounts  afifected  as  above  explained. 

The  sales  summary  may  be  used  for  original  entries  like  the  other  summary  books,  if  sales  are  active 
as  they  would  probably  be  when  parde:")  truck  is  sold.  Jp  such  case,  sales  on  account  can  be  posted  from  the 
sales  summary  without  entry  in  the  jourrial,  except  iii  totals  at  the  close  of  the  month. 


FARM  ACCOUNTING 


AUXILIARY  BOOKS 

In  addition  to  the  above  summary  books,  a  number  of  books  for  reference  not  necessary 
to  the  accounting  scheme  may  be  kept.  These  are  called  auxiliary  (helping)  books,  and  may 
be  taken  up  or  discontinued  as  serves  the  purpose.  Among  these  may  be  mentioned  registers 
of  stock  pedigree,  records  of  detailed  cost  and  production  in  any  experimental  test,  sum- 
mary of  sales  for  the  month  showing  quantity  of  each  commodity,  with  prices,  etc.  Such 
books,  while  valuable  for  the  purposes  intended,  are  independent  of  the  accounting  scheme. 

DAILY  REPORT  CARDS 

Success  in  keeping  farm  books  depends  on  convenience  in  making  the  original  records. 
This  is  brought  about  by  the  use  of  individual  report  cards  properly  ruled  and  printed  to  ac- 
commodate the  required  data.  Each  person  working  about  the  place  receives  a  card  in  the 
morning  in  which  he  fills  during  the  day  the  time  spent  in  departments,  the  team  use,  the 
product  passing  through  his  hands,  and  on  the  reverse  side  of  the  card  the  business  dealings 
which  he  carries  out.  This  card  he  returns  at  night  together  with  any  cash  or  other  matter 
that  should  accompany  it.  Entries  are  made  from  these  cards  at  the  convenience  of  the  book- 
keeper who  then  files  them  as  vouchers. 

PRELIMINARY  EXERCISE 

DETAILED  RECORD  FOR  EXPERIMENTAL  PURPOSES 

The  Poultry  Record  for  experimental  purposes  is  here  given.  A  similar  record  can 
be  kept  if  desired  for  any  specific  line  of  production.  A  detailed  orchard  record,  a 
garden  record,  a  real  estate  record,  etc.,  would  be  of  value  in  correcting  the  uncertainties  of 
"guessing." 

The  experimental  poultry  record  here  given  exhibits  in  detail  five  items  of  cost:  (1) 
labor,  (2)  feed,,  (3)  housing,  ground  and  tools,  (4)  stock,  (5)  miscellaneous.  It  grves  three 
items  of  production :  (1)  eggs,  (2)  stock,  (3)  miscellaneous.  The  columns  are  lettered  A 
to  H  in  order  to  allow  a  special  memorandum  to  refer  to  an  amount  in  any  column  without 
requiring  the  use  of  more  than  one  line  per  day.  Other  facts  are  recorded  as  shown  by  the 
column  headings.  Notice  particularly  that  the  total  value  of  the  investment  is  entered  at 
top  and  is  changed  with  each  day's  entries,  and  at  the  end  of  the  month,  the  interest  on  the 
investment  can  be  easily  computed  and  charged  in. 

OPENING  THE  RECORD 

The  inventories  at  starting  should  be  placed  at  the  head  of  the  columns  (red  ink)  so 
that  the  current  entries  following  (black  ink)  can  be  footed  separately.  The  red  ink  amounts 
at  top  plus  the  footings  for  the  current  month  will  be  added  and  carried  to  the  top  of  the  next 
open  folio  representing  the  following  month.  These  in  turn  will  be  carried  forward  month  by 
month  to  Dec.  31,  the  close  of  the  year,  when  a  new  register  is  to  be  opened  for  the  ensuing 
year. 

MEMORANDA 

The  following  entries  are 'made  on  the  assumption  that  the  labor  is  worth  25c  per  hour, 
and  that  money  is  worth  6  per  cent  interest  annually.  Make  all  daily  calculations  correct  to 
the  nearest  cent. 

Dec.  1.  Began  poultry  record  today  with  the  following  property  invested :  120  chick- 
ens, 360  lb.  @  10c  per  lb.,  entered  in  column  D;  Chicken  house  valued  @  $84.50,  fencing, 
crates,  etc.,  $16.80,  bone  grinder,  $7.50,  sprayer,  $3.00,  in  column  C;  40  lb.  chick  feed  worth 
80  cts.,  12  bu.  corn  @  50  cts.,  7  bu.  wheat  @  $1.10,  in  column  B;  one  Poultry  Guide  Book, 
$1.20,  unexpired  subscription  to  the  Poultry  Journal,  40c,  in  column  E. 

Enter  number  of  poultry  on  hand  in  column  provided  for.  that  purpose.  Enter  the  values  here  shown  in 
the  respective  debit  columns  (red  ink).  Enter  the  total  in  the  investment  balance  column  (black  ink).  In  this 
exercise,  entries  are  to  be  made  directly  into  the  record  from  memoranda  as  given. 


FARM  ACCOUNTING 


C>0<Li-ti-^    |o  /^ 

POULTRY 

Dr. -A. 

Dr.- 

B. 

Dr.— 

^ 

Dr.-D. 

Dr.-E. 

Day  of 

No. 
Fowls 

MEMORANDA 

Amt. 

LABOR 

PEED 

HouSlDK 

Ground  and 

Tools 

Stock 

■ 

Hours 

Value 

Miscellaneous 

/^^ 

Forward  Totals 

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Dec.  1.  During  the  day,  one  hour  was  spent  in  labor  on  poultry  and  17  eggs  worth  24 
cts.  per  doz.  were  gathered.  Charge  labor  25  cts.,  and  credit  eggs  34  cts.  on  the  line  dated 
Dec.  1.  '  - 

Add  the  debit  and  subtract  the  credit  from  the  investment  balance  showing  the  invest- 
ment burden  reduced  to  $163.81. 

Dec.  2.  Today,  spent  time  2  hrs. ;  nails  purchased  10c ;  eggs  gathered  16  @  24c. 
Enter  and  extend  balance. 

Note  that  the  explanation  referring  to  the  nails  purchased  refers  to  the  entry  for  the  amount  in  Column 
"C" — Housing,  Ground  and  Tools. 

Dec.  3.  Labor  ^  hour;  bought  100  lb.  oyster  shells  for  75c;  sold  the  bone  grinder 
on  hand  for  $8 ;  eggs  gathered  8  @  24  cts. 

Dec.     4.  Eggs  gathered  15  @  24  cts. ;  labor  J^  hour. 

"  5.  Labor  1  hr. ;  2  chickens,  8  lb.  used  or  sold  @  10  cts.  per  lb. ;  19  eggs  gath- 
ered @  25  cts.  Count  the  chickens  remaining  and  place  the  number  in  the  "No.  Fowls" 
column. 

Dec.  6.  Added  to  investment  a  pen  of  three  fowls  for  $20 ;  labor  1  hr. ;  16  eggs  gath- 
ered @  25  cts.  Enter  number  of  fowls  on  hand. 

Dec.     7.  Labor  1  hr. ;  18  eggs  gathered  @  26  cts. ;  10  chi(|kens,  45  lb.  sold  @  10  cts. 

"       8.  Yi  hr.  labor;  14  eggs  gathered  @  25  cts. 

"       9.  y^  hr.  labor ;  17  eggs  gathered  @  26  cts. 

"     10.  100  lb.  granulated  bone  bought  for  $3 ;  labor  ^  hr. ;  13  eggs  gathered  (S) 

26  cts.  - 

Dec.  11.  Ya,  hr.  labor;  22  eggs  gathered  @  26  cts. 

"     12.  1  hr.  labor ;  purchased  glass  for  repairs  32  cts. ;  eggs  15  @  27  cts. 

"     13.  Bought  100  lb.  mica  grit  for  75c ;  1  hr.  labor ;  21  eggs  @  27c. 

"     14.  3^  hr.  labor;  16  eggs  @  27c. 

"     15.  y^  fir.  labor;  100  lb.  Kaffir  corn  bought  for  $1.50;  13  eggs  @  27c. 

"     16.  Ihr.  labor;  18  eggs  @  28c. 


'  FARM  ACCOUNTING 


RECORD 


Ci 

.-F. 

Cr.-G. 

Cr.-l- 

1. 

Amt 
Col. 

EGGS                                 1 

stock 

Miscellaneous 

Number 

Per  Doz 

Value            1 

Balance 

Forward  Totals 

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Dec.  17.     1  hr.  labor;  paid  poultry  association  dues  $1;  24  eggs  @  28c. 
"     18.     >4  hr.  labor;  17  eggs  @  28c. 

"     19.     Ihr.  labor;  29  eggs  @  27c.  '  '  " 

"     20.     ^  hr.  labor ;  bought  100  lb.  poultry  mash   for  $1.75 ;   29  eggs   @    27c ;   24 
chickens  sold,  96  lb.  @  10c. 

Dec.  21.     y2  hr.  labor ;  21  eggs  @  28c. 

14  hr.  labor ;  21  eggs  @  28c ;  sold  25  lb.  granulated  bone  for  75c. 
1  hr.  labor;  bought  100  lb.  charcoal  for  $1.50;  26  eggs  @  28c;  sold  10  chick- 
10>^  cts. 
Bought  1  dry  food  hopper  $1.50 ;  1  hr.  labor ;  27  eggs  @  28c. 
>4  hr.  labor ;  29  eggs  @  28c. 

Paid  for  advertisement  in  poultry  journal  $3 ;  1  hr.  labor ;  23  eggs  (@  28c. 
\y2  hr.  labor;  bought  100  lb.  beef  scraps  for  $3.50;  28  eggs  @  27c. 

1  hr.  labor;  27  eggs  @  28c. 

2  hr.  labor;  21  eggs  @  29c. 

1  hr.  labor ;  bought  45  bu.  corn  @  48c ;  24  eggs  @  29c. 

Before  making  entries  for  the  last  day  of  the  month,  foot  the  Investment  Bal- 
ances column  including  the  balance  carried  forward.     The  total  of  the  daily  balances  equals 
in  value  the  entire  amount  invested  for  one  day.     Find  the  interest  on  this  at  6  per  cent' 
(point  off  3  places  and  divide  by  6),  and  charge  the  interest  in  the  debit  miscellaneous  col- 
umn.    Complete  the  record  of  this  day  with  entry  of  1  hour  labor;  29  eggs  gathered*  @  30c. 

Proof  of  Work.  Foot  all  columns  in  red  ink.  Be  careful  not  to  include  red  ink  totals 
at  top  of  colunms.  The  balance  at  beginning  of  month  plus  the  sum  of  debit  footings  less  the 
sum  of  credit  footings  equals  balance  at  close  of  month  if  work  is  correct. 

Loss  or  Gain.  The  loss  or  gain  for  any  period  may  be  found  by  comparing  the  last 
balance  with  the  value  of  property  on  hand.  For  example,  if  on  taking  "an  inventory  we  find 
that  we  have  on  hand  charged  in  column  B  $25.85;  C  $106.22;  D  $59.56;  and  E  $3,  the 


"     22. 

"     23. 

ens,  45  lb.  @ 

Dec.  24. 

'     25. 

'     26. 

'     27. 

'     28. 

■'     29. 

'    30. 

'     31. 

FARM  ACCOUNTING 


sum  of  these,  $194.63,  will  show  a  net  gain  for  the  month  if  greater  than  the  last  balance 
or  a  net  loss  if  less  than  the  last  balance. 

Continuing  Next  MontH.     Carry  the  inventory  amounts  forward  (red  ink),  also  num- 
ber of  fowls  and  investment  balance  (black  ink)  as  before. 


QUESTIONS 


1.  How  many  hours  were  given  to  poultry  raising  during  the  month  ? 

2.  How  would  you  find  the  average  egg  proclution  per  fowl? 

3.  How  much  is  now  invested  in  the  poultry  industry  ? 

4.  What  is  the  value  of  the  entire  investment  for  the  month  ? 

5.  What  is  the  total  of  returns  for  the  month? 

6.  How  would  you  find  the  total  feed  cost  for  the  month?  (Ans.  By  subtracting  the 
inventory  total  of  feed  on  hand  from  the  entire  total  of  feed  column,) 

7.  How  can  the  total  profit  for  the  month  be  found?  (Ans.  By  subtracting  the  last 
investment  balance  from  the  total  present  value  of  all  property  that  has  been  charged  in  the 
several  debit  columns.) 

8.  How  should  a  following  month's  record  be  opened? 

9.  Why  is  interest  included  as  a  charge  on  the  last  day  of  the  month  ? 

10.     How  can  the  actual  investment  in  this  business  on  a  given  date  be  found? 


Farm  Set 

Jan.  1,  1911.  E.  A.  Atkinson,  farmer,  decides  to  keep  a  full  set  of  books  so  arranged  as 
to  show  the  following  facts  of  his  farming  business : 

1.  The  amount  actually  invested  at  any  one  time  in  any  department. 

2.  The  profit  or  loss  on  any  department. 

3.  The  outlay  necessary  for  the  profitable  maintenance  of  any  department. 

4.  The  waste,  if  any^  that  may  be  eliminated. 

5.  The  amount  and  kind  of  his  resources  and  liabilities. 

6.  The  net  profit  of  farming. 

OPENING  THE  BOOKS 

Inventory.  The  first  step  in  preparing  to  open  the  books  is  to  take  an  inventory  of  all 
property  and  debts.  On  a  farm  this  inventory  should  be  listed  on  journal  paper  with  great 
care  to  include  everything  of  value  about  the  place  and  to  give  to  it  a  fair  valuation.  After 
the  first  inventory,  subsequent  inventories  will  be  found  less  dif^cult,  as  the  first  one  will  be  on 
record  for  comparison.  When  the  inventory  is  completed,  copy  it  neatly  in  the  journal.  The 
following  are  the  items : 


FARM  ACCOUNTING 


Inventory  of  Real  Estate  and  Personal  Property  of  E.  A.  Atkinson's  Farm — S.  E.  }i.  Sec.  7, 

Tivp.  83  N.,  R'7  W.,  5  P.  M. 

RESOURCES 

1.  160  Acres  Land  less  Buildings $16000.00 

2.  Farm  House  and  Improvements,  Family  use 2700.00 

3.  Buildings  for  use  of  Teams 420.00 

4.  Buildings  for  use  of  Dairy 950.00 

5.  Buildings  for  use  of  Hogs 300.00 

6.  Buildings  for  use  of  Poultry 116.50 

7.  Buildings  for  storage,  including  corn  cribs,  wheat  bin,  etc.  250.00 

8.  Cow,  June '. 55.00 

9.  "      Lily 65.00 

10.        "      Cremo    40.00 

n.        "      Crumple 45.00 

12.  "      Blackhawk   35.00 

13.  "      Star    80.00 

14.  "      Dunn   38.00 

15.  "      Watercress   45.00 

16.  "      Spotty 50.00 

17.  4  yearlings 80.00 

18.  3  two-year-olds 90.00 

19.  1  Cream  Separator 42.00 

20.  I  Churn  and  attachments 58.00 

21.  Horse,  Dan 160.00 

22.  "        Caesar 200.00 

23.  "       Kit 125.00 

24.  "       Joe 90.00 

25.  "        Nancy 75.00 

26.  1  two-year-old 80.00 

27.  1  Gang  Plow 45.00 

28.  1  Walking  Plow . .  14.00 

29.  1  Disc  Harrow 18.00 

30.  2  Corn  Cultivators 72.00 

31.  1  Farm  Wagon 56.00 

32.  1  low  Wagon 40.00 

33.  1  Corn  Planter 28.00 

34.  1  Manure  Spreader 22.50 

35  Harness  37  50 

36.  30  head  Hogs,"  4500  lb.,"  per  "cwt .'.'.'.'.' ." '.  .*@*$7."o"o'."."^ !  *. '.  315*00 

37.  77  Chickens,  272  lb @       .10......  27.20 

38.  Chicken  Feed  carried  over 5.10 

39.  1896  bu.  Corn @       .50 948.00 

40.  600' bu.  Oats @       .35 210.00 

41.  190  bu.  Wheat @       .90 171.00 

42.  42  tons  Timothy @     8.00 336.00 

43.  10  tons  Prairie  Hay @     4.00 40.00 

44.  16  tons  Clover @     7.50 120.00 

45.  300  head  Cabbage @       .04 12.00 

46.  420  bu.  Potatoes @       .45 189.00 

47.  200  bu.  Turnips @       .25 50.00 

48.  480  lb.  dressed  Pork @       .08 38.40 

49.  300  lb.  dressed  Beef @       .06 18.00 

50.  20  Cords  Wood @     5.00 r  100.00 

51.  459  Posts @       .18 82.62 

.  52.     Cash  in  Bank 129.88 

Total $25314.70 


10 


FARM  ACCOUNTING 


LIABILITIES 

53.  Mortgage  note  favor  Monarch  Insurance  Co.,  due  Jan.  1, 

1913,  with  interest  at  5%  payable  July  1  and  Jan.  1 
until  paid.  Part  purchase  price  of  land.  Next  inter- 
est payment  July  1 $  7000.00 

54.  Note  due  bank  Jan.  15 200.00 

55.  James  Goodwin,  balance  due  on  acct 49.69 

56.  A.  A.  Wells  &  Co*  balance  due  on  acct 178.29 

57.  W.  Cushman,  balalice  due  on  acct 5.04 

Total ., $  7433.02 

As  shown  in  the  model,  number  the  items  in  the  inventory  1  to  57  for  convenient  refer- 
ence later  on. 

Ledger.  The  general  accounts  of  the  ledger  will  include  Proprietor's  Investment,  Cash, 
Merchandise,  Real  Estate,  Chattels,  Dairy,  Teams,  Hogs,  Poultry,  Orchard,  and  Labor. 

Other  departments  as  needed  will  be  opened.  Give  each  account  one  page  of  ledger 
space.  The  general  accounts  will  occupy  pages  1  to  20.  The  order  of  their  entry  is  given 
under  "Opening  the  Ledger"  on  the  following  page. 

The  personal  accounts  are  to  be  entered  in  the  personal  division  of  the  ledger.  Be  care- 
ful to  make  full  use  of  the  explanatory  space.  For  example,  a  long  time  note  should  have 
explanation  showing  to  whom  given,  the  terms  of  payment,  etc.,  thus  making  a  convenient 
reference.  When  personal  accounts  are  opened,  any  conditions  or  explanations  of  the  ac- 
count should  be  recorded  at  the  beginning  of  the  account.  Thus,  an  account  opened  with  an 
employee  should  give  a  brief  memorandum  of  the  terms  of  his  employment,  at  the  top  of  the 
ledger  account. 

FIRST  JOURNAL  ENTRY 

The  inventory  which  has  been  spread  on  the  journal  in  memorandum  form  should  now 
be  reduced  to  debit  and  credit  entries.  Before  considering  the  titles  to  be  used  in  detail, 
observe  that  the  journal  has  two  special  debit  and  credit  columns,  which  are  footed  monthly 
and  posted  from  the  general  columns  as  single  items. 

In  making  the  opening  journal  entry,  total  the  items  Nos.  1  to  7  of  the  inventory  and 
charge  Real  Estate  with  their  sum.  Total  items  Nos.  8  to  51  and  charge  Chattels.  Charge 
Cash  (in  general  column)  with  No.  52. 

Credit  Nos.  53  an  54  to  Notes  Payable.  Credit  Nos.  55  to  57  to  the  respective  persons 
owed.  Credit  E.  A.  Atkinson,  Proprietor,  with  the  difference  between  the  total  debits  and 
credits  entered. 

Rule  and  total  the  opening  entry  as  shown  in  the  model  form. 


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FARM  ACCOUNTING 


11 


OPENING  THE  LEDGER 

It  has  been  determined  that  accounts  will  be  kept  with  each  of  the  general  divisions 
of  the  business  named  before.  Enter  the  titles  in  the  general  ledger,  one  page  each,  reserv- 
ing page  one  for  the  proprietor,  and  opening  the  other  general  accounts,  giving  Cash  page  2, 
Merchandise  3,  Real  Estate  4,  Chattels  5,  Dairy  6,  Teams  7,  Hogs  8,  Poultry  9,  Orchard 
10,  Labor  19,  General  Expense  20.  (Reserve  pages  11  to  18  for  crop  accounts  that  will  be 
opened  later  in  the  year.)  Enter  the  accounts  with  notes  and  persons  beginning  with  Notes 
Payable  in  the  second  division  of  the  ledger,  on  page  21,  giving  one  page  to  each  account.  Be 
careful  to  index  all  accounts.  '"/ 

Post  the  proprietor's  credit  on  page  1.  Likewise  post  Real  Estate,  Chattels,  and  Cash 
to  the  respective  accounts,  using  the  explanatory  space  in  each  instance. 

When  the  financial  accounts  are  posted,  the  explanatory  space  should  be  freely  used 
describing  notes  and  the  itemized  debits  and  credits  of  the  accounts  with  persons.  An  ac- 
count with  a  person  should  be  self-explanatory,  so  that  any  discussion  relative  to  it  would 
not,  as  a  rule,  require  reference  to  the  original  er^try. 

Post  all  accounts  in  the  opening  entry. 


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THE  TRIAL  BALANCE 

A  continuous  trial  balance  book  is  used.  This  book  contains  the  account  titles  at  the  left 
with  columns  at  the  right  for  the  monthly  trial  balances  of  a  year.  In  entering  the  titles,  fol- 
low the  order  in  the  ledger,  and  leave  blank  spaces  for  such  pages  as  are  not  used.  Notes 
Payable,  the  first  of  the  financial  accounts,  would  be  written  on  line  21  of  the  trial  balance, 
and  lines  7  to  20  would  not  be  required  in  the  opening  trial  balance. 

After  entry,  if  the  trial  balance  proves,  you  may  consider  the  books  opened. 

USE  OF  THE  GENERAL  ACCOUNTS 

An  understanding  of  the  use  of  the  general  accounts  (those  on  pages  3  to  20)  is  essen- 
tial.    Study  carefully  the  following  facts. 

Merchandise.  Every  salable  or  usable  thing  produced  on  the  farm  (for  example,  corn, 
hogs,  wheat,  fruit,  milk,  eggs),  is  charged  to  this  account  as  soon  as  the  farm  process  of 
preparing  it  is  completed.  It  is  then  to  be  disposed  of  and  when  so  disposed  of,  Merchan- 
dise account  is  credited.     Merchandise  is  the  trading  account  of  the  farm. 

Real  Estate.  The  cost  of  the  land,  buildings  and  other  permanent  improvements  and 
any  labor,  cash,  or  property  expended  upon  it  is  charged  to  this  account.    Real  Estate  is  cred- 


12 


FARM  ACCOUNTING 


ited  with  the  rental  value  of  real  property  used  in  any  of  the  departments,  as  for  dairy,  for 
storage  of  products,  etc.  Other  values  directly  from  the  land  as  wood,  wild  fruits,  etc., 
would  credit  to  this  account.  If  the  farm  is  operated  to  full  capacity,  the  real  estate  account 
should  show  a  net  profit  of  2  to  6  per  cent. 

Chattels.  This  account  is  charged  with  the  value  of  all  personal  property  not  pertain- 
ing to  any  department  of  farm  work.  Such  property  as  is  appropriated  to  any  special  de- 
partment is  charged  to  that  department  and  a  corresponding  credit  made  to  Chattels  account. 
It  will  be  noted  that  this  account  would  not  ordinarily  show  much  gain  or  loss,  but  simply  rep- 
resents personal  property  not  classified. 

Crops,  When  active  "farming  opens,  an  account  is  opened  with  each  crop;  as  corn,  oats, 
potatoes,  etc.  Each  of  these  is  to  be  charged  with  the  rental  value  of  land,  seed,  labor,  and 
other  cost,  and  credited  with  product. 

Dairy.  Charged  with  the  cost  and  maintenance  of  the  milch  cows,  and  credited  with 
the  product. 

Teams.  Charged  with  cost  and  maintenance  of  farm  draft  animals  and  all  farm 
machinery  dependent  on  horse  power;  and  credited  with  the  value  of  their  daily  use. 

Poultry,  Garden,  Orchard,  and  all  similar  accounts  are  charged  with  entire  cost  of 
rental,  stock,  labor,  etc.,  and  credited  with  product. 

Labor.  Charged  with  wages  and  board  of  laborers  and  credited  when  the  labor  done 
is  distributed  to  the  departments  affected. 

BLOCKING  OUT  THE  YEAR 

It  is  impossible  to  decide  in  any  one  day  the  entire  operations  of  a  year  on  the  farm. 
But  the  main  divisions  of  industry  can  be  blocked  out  on  January  1,  and  such  changes  as  are 
made  from  the  original  plan  or  additions  to  it  can  be  considered  and  entered  at  a  later  date. 

Mr.  Atkinson  divides  the  accounts  for  the  year's  work  as  follows : 

The  products  of  the  farm  will  be  charged  to  Merchandise  account  together  with  the 
rental  of  the  buildings  used  for  storage  purposes.  Make  a  journal  entry  debiting  Merchan- 
dise with  inventory  Nos.  38  to  51,  and  6%  on  No.  7,  crediting  Chattels  and  Real  Estate. 

The  following  is  the  entry: 


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For  the  Dairy  he  will  use  Building  (No.  4),  Cows  (Nos.  8  to  16),  Separator  (No.  19), 
and  Churn  and  attachments  (No.  20),  as  listed  in  the  inventory. 

Charge  Dairy  with  6%  on  $950  for  rental  of  building  one  year  and  credit  Real  Estate, 
also  with  the  inventory  value  of  Nos.  8  to  16,  19,  and  20 ;  and  credit  Chattels. 

Charge  Teams  account  with  6%  on  No.  3  and  with  inventory  value  of  Nos.  21  to  25, 
and  27  to  35;  crediting  Real  Estate  and  Chattels. 

Charge  Hogs  account  with  No.  36  and  6%  on  No.  5;  making  proper  credits. 

Charge  Poultry  with  Inventory  No.  37  and  6%  on  No.  6,  making  proper  credit. 

Charge  Orchard  with  $6  rental  on  one  acre  of  ground  and  the  trees  on  it,  the  latter 
valued  at  $120.    Credit  the  entire  amount  to  Real  Estate. 


FARM  ACCOUNTING 


13 


Charge  E.  A.  Atkinson  {Personal  account)  with  annual  rental  on  No.  2  at  6% ;  credit- 
ing Real  Estate. 

Note  that  all  property  in  the  inventory  has  been  charged  to  the  departments  concerned 
except  the  ground  use,  which  is  to  be  charged  to  crops  later,  and  the  items  of  inventory  Nos. 
17,  18,  and  26  which  remain  in  Chattels  account  until  a  use  or  sale  of  them  is  made. 

Post  the  entries  to  the  ledger  and  carry  out  the  balances.  Open  an  account  with  E.  A. 
Atkinson,  personal,  in  the  financial  division  of  the  ledger.  Be  sure  to  itemize  in  the  ledger 
what  each  charge  or  credit  is  for. 

Before  going  further,  glance  over  the  ledger.  On  the  first  page,  $17881.68  shows  that 
the  business  owes  this  amount  to  the  proprietor  as  net  investment.  The  Cash  account  shows 
a  debit  balance  of  $129.88  on  hand.  Merchandise  account  shows  salable  products  of  farm 
awaiting  disposition  amounting  to  $2335.12.  Real  Estate  account  shows  a  balance  of 
$20,326.31  after  the  several  credits  are  posted.  The  credits  amounting  to  $410.19  represent 
6%  of  the  Real  Estate — value  in  use.  When  all  the  fields  are  put  into  use,  a  total  credit  equal 
to  6%  of  the  original  inventory  value  should  appear.  This  profit  will  be  reduced  by  charges 
for  taxes,  maintenance,  etc.  Chattels  account  shows  a  debit  balance  of  $250,  representing 
that  value  of  chattels  on  hand  for  which  no  present  use  is  found.  The  remaining  general 
accounts  should  show  in  the  debit  column  the  actual  investment  in  each.  The  actual  invest- 
ment in  each  department  is  of  great  importance  and  should  be  carefully  considered  with  a 
view  to  getting  returns  proportionate  to  the  investment. 

DAILY  REPORTS 

The  memoranda  from  which  current  entries  are  made  should  be  reported  daily  on  cards 
and  the  cards  held  for  entry,  and  after  entry  they  should  be  placed  in  a  package  for  possible 
future  reference.  The  card  is  so  printed  as  to  show  where  and  how  long  a  given  person 
worked  during  the  day,  what  team  work  was  done,  the  products  resulting  from  the  day's 
work,  and  the  general  business  dealings  carried  out  by  him. 


DAILY  REPORT 

^  ^^ LABOR                         ^ 

DEPARTMENT 

Mu           1 

Tea.                     1 

HOUKS 

AMT. 

HOUKS 

AMT, 

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Poultry 

Teams^^^^VV  C^oA^ 

^  /i 

Real  Estateii:^^2^z^:,:c^ 

M- 

^ 

1 

Total  Time                       [/ ^ 

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■ 

PRODUCTS                                                    j 

Memo. 

Quantity 

Milk 

Gallons 

J^^ 

Eggs. 

Nambei 

/^       , 

^^.-^ 

^-^ 

^     'Yj^. 

The  above  card  shows  on  front  and  reverse  sides  the  day's  report  of  John  Bentley,  farm 
hand,  on  Jan.  17,  1911, 


14  FARM  ACCOUNTING 


Notice  that  he  spent  4  hr.  self  and  2  hr.  team  in  timber  getting  out  wood;  3  hr.  with 
f'^am  in  deHvery  of  merchandise ;  2  hr.  in  dairy  work ;  I/2  hr.  in  care  of  hogs ;  y^  hr.  in  care 
of  teams ;  24  gal.  milk  was  taken,  17  eggs  gathered,  and  Yz  cord  of  wood  was  brought  up. 

The  reverse  side  of  the  card  shows  that  he  took  to  market  and  sold  hay  for  cash  $12, 
he  delivered  18  lb.  butter  fat  to  creamery  worth  today  24c  per  lb.,  and  brought  back  1000  lb. 
shorts  for  cow  feed  worth  $1.05  per  cwt. 

ROUTINE  ENTRIES 

Routine  entries  in  farm  books  are  conveniently  made  daily,  weekly,  or  monthly.  The 
summaries  from  these  entries  should  be  made  on  the  last  day  of  the  month.  These  will  be 
illustrated  as  soon  as  sufficient  memoranda  is  gathered.  Whatever  the  interval  decided  on, 
the  time  selected  should  be  reserved  for  that  purpose,  so  that  the  habit  of  making  the  entries 
at  an  appointed  time  may  be  formed. 

EMPLOYEES'  LABOR 

In  this  set  labor  will  be  computed  at  a  certain  rate  per  month  including  board  or  $15 
per  month  higher  without  board.  The  monthly  wage  plus  board  will  be  divided  by  250  to 
give  the  value  of  labor  by  the  hour.  Thus  $30  wages  +  $15  board  =  $45  -4-  250  =  18  cts. 
per  hour.  The  owner  of  the  farm  is  credited  in  personal  account  with  the  board  of  employees 
and  the  labor  account  is  charged  for  the  same. 

The  following  is  the  list  of  persons  receiving  credit  for  labor  beginning  Jan.  1,  1911 : 

E.  A.  Atkinson,  Manager,  $60  per  month.  Board  not  considered.  Time  to  be  distributed 
at  24c  per  hour. 

E.  P.  Johnson,  $30  per  month  and  board.  Time  to  be  distributed  at  18c  per  hour.  En- 
gaged for  one  year  to  Dec.  31,  1911. 

Jonas  Overburg,  $20  per  month  and  board.  Time  distributed  at  14  cts.  per  hour.  En- 
gaged by  the  month. 

Open  ledger  accounts  with  Johnson  and  Overburg  and  write  across  the  ledger  the  memo- 
randa pertaining  to  each. 

Team  use,  including  horses,  vehicles,  and  machinery,  is  to  be  distributed  at  20  cts.  per 
hour. 

When  the  daily  reports  of  time  and  product  are  handed  in,  it  is  the  bookkeeper's  place  to 
extend  the  proper  prices  opposite  each  item  and  make  entries  in  the  summary  sheets  as  before 
explained.  These  summary  sheets  are  footed  monthly  and  charges  are  made  to  the  depart- 
ment accounts,  and  the  totals  are  credited  to  Labor  and  Teams. 

Entries  of  business  transactions  found  on  the  reverse  side  of  the  report  card  should  be 
made  in  the  journal. 

The  payments  of  money  in  currency  or  by  check  are  not  distinguished  in  this  set,  for  the 
reason  that  the  accounting  is  not  affected  by  such  distinctions.  The  monthly  cash  balance  as 
shown  in  the  ledger  is  reconciled  with  cash  on  hand  and  in  the  bank  as  in  any  other  business. 

In  the  month  of  January  following,  the  student  is  expected  to  make  out  the  daily  report 
cards  of  Atkinson,  Johnson  and  Overburg,  as  they  should  make  them,  and  then,  as  book- 
keeper, record  them  in  the  blank  books. 

MEMORANDA  FOR  THE  REPORT  CARDS 
JANUARY  1 

E.  A.  Atkinson  spent  1  hr.  in  care  of  hogs. 

Date  a  report  card  "Jan.  1,  19 — ,''  fill  m  the  name  "E.  A.  Atkinson,"  and  enter  "1"  opposite  Hogs  on 
card  in  the  column  headed  man.  Do  not  fill  in  the  amount.  Place  the  card  away  for  entry  in  the  books 
Saturday,  Jan.  7. 

E.  P.  Johnson  spent  4  hr.  in  dairy  work.    The  milking  consisted  of  27  gallons. 

Date  and  fill  E.  P.  Johnson's  card,  placing  the  number  of  hours  after  Dairy  and  the  number  of  gallons 
in  day's  milking  after  Product.     Place  the  card  with  E.  A.  Atkinson's  card  for  entry  next  Saturday. 

Jonas  Overburg  spent  2  hr.  in  care  of  poultry  and  2  hr.  in  care  of  teams.     He  gathered 

30  eggs. 

Prepare  Overburg's  ticket  and  place  his  card  with  the  others  of  Jan.  1. 

Hereafter  in  January,  prepare  tickets  for  all  hands  from  the  memoranda  and  place  the 
tickets  in  the  package  for  entry  at  the  close  of  the  week. 


FARM  ACCOUNTING 


15 


JANUARY  2 

E.  A.  Atkinson's  report: 

Labor — Chopped  wood  in  timber  lot  8  hr.  (Real  Estate)  ;  2  hr.  self  and  team  in  sale  of 
1  load  corn  (Mdse.) ;  1  hr.  in  care  of  hogs. 

Product — 1  cord  wood  and  17  posts. 

Dealings — Sold  52  bu.  corn  @  55  cts.  for  cash. 

Records  of  business  dealings  (reported  on  reverse  side  of  card)  should  be  journalized  on  the  date  of  the 
transactions.     They  frequently  involve  receipt  or  payment  of  cash  which  should  have  immediate  entry. 

E.  P.  Johnson's  report: 

Labor — 5  hr.  self  and  2  hr.  team  in  timber  (Real  Estate)  ;  5  hr.  in  dairy. 

Product — 26  gal.  milk  and  1  cord  wood. 
Jonas  Overhurg's  report: 

Labor — 4  hr.  self  and  team  delivering  milk  (Mdse.)  ;  2  hr.  in  care  of  poultry;  4  hr.  in 
care  of  horses  and  repairing  harness. 

Product — 36  eggs  gathered. 

Dealings — Sold  milk  tickets   (representing  12  gal.)  for  cash  $3. 


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JANUARY  3 

E.  A.  Atkinson's  report: 

Labor — 9  hr.  self  and  4  hr.  team  in  timber  getting  out  wood,  1  hr.  in  care  of  hogs. 

Product — 2  cords  wood  and  10  posts. 
E.  P.  Johnson's  report: 

Labor— 6  hr.  self  and  2  hr.  team  in  timber  and  hauling  out  wood ;  4  hr.  in  dairy. 

Product — 26  gal.  milk,  1  cord  wood,  10  posts. 
Jonas  Overhurg's  report: 

Labor — 4^  hr.  self  and  team  delivering  milk,  3^  hr.  in  care  of  poultry,  2  hr.  in  care  of 
teams. 

Product — 24  eggs  gathered. 

Dealings — Sold  milk  tickets  (4  gal.)  for  cash  $L  Sold  E.  A.  Atkinson  on  account  milk 
tickets  (10  gal.)  for  $1.50. 

JANUARY  4 

E.  A.  Atkinson's  report: 

Labor — 8  hr.  self  and  6  hr.  team  in  timber,  2  hr.  self  and  team  delivering  merchandise, 
1  hr.  in  care  of  hogs. 

Product — 2  cords  wood. 

Dealings— Sold. 2  tons  timothy  hay  for  cash  @  $8.75.  Bought  for  cash  2000  lb.  mill- 
feed  for  $22.     (Charge  Mdse.) 


18  FARM  ACCOUNTING 


E.  P.  Johnson's  report: 

Labor — 4  hr.  chopping  wood  in  timber,  3  hr.  self  and  team  delivering  merchandise,  3 
hr.  in  dairy. 

Product — 27  gal,  milk,  ^  cord  wood. 

Dealings — Sold  Goldleaf  Creamery  Co.,  on  account,  27  lb.  butter  fat  @  24  cts.     Sold 
for  cash  1^  tons  timothy  hay  @  $8.75. 
Jonas  Overburg's  report: 

Labor — 5^  hr.  self  and  team  delivering  merchandise,  2^^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 43  eggs  gathered. 

Dealings — Sold  for  cash  2  tons  timothy  hay  @  $8.50.  Sold  milk  tickets  (8  gal.)  for 
cash  $2. 

JANUARY  5 
E.  A.  Atkinson's  report: 

Labor — 8  hr.  chopping  wood  in  timber,  2  hr.  self  and  team  delivering  merchandise,  1 
hr.  in  care  of  hogs. 

Product — 2  cords  wood. 

Dealings — Sold  for  cash  1  cord  wood  for  $6.50. 
E.  P.  Johnson's  report: 

Labor — 2  hr.  chopping  in  timber,  4  hr.  self  and  team  delivering  merchandise,  4  hr.  in 
dairy. 

Product — 16  posts,  27  gal.  milk. 

Dealings — Sold  for  cash  79  posts  @  21  cts. 
Jonas  Overburg's  report: 

Labor — ^  hr.  self  and  team  delivering  merchandise,  5  hr.  in  care  of  poultry,  2  hr.  in 
care  of  teams. 

Product — 35  eggs  gathered. 

Dealings — Sold  A.  A.  Wells  &  Co.  on  acct.,  12  doz.  eggs  @  29  cts.  Bought  of  A.  A. 
Wells  &  Co.,  on  acct.,  1  brl.  salt  for  $2,  gluten  feed  for  $5.40.  (Debit  Mdse.  with  the  pur- 
chase. ) 

JANUARY  6 
E.  A.  Atkinson's  report: 

Labor — 4  hr.  self  and  team  getting  wood  from  timber,  3  hr.  self  and  team  hauling  hay  to 
market,  1  hr.  in  care  of  hogs,  1^  hr.  in  care  of  teams. 

Product — 1  cord  wood. 

Dealings — Sold  for  cash  1^  tons  timothy  hay  @  $8.50.     Paid  Jonas  Overburg  cash 
on  acct.  $10. 
E.  P.  Johnson's  report: 

Labor — 5  hr.  self  and  team  getting  wood  from  timber,  5  hr.  in  dairy. 

Product — ^  cord  wood,  13  posts,  25  gal.  milk. 
Jonas  Overburg's  report: 

Labor — 7  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  poultry,  2  hr.  in  care 
of  teams. 

Product — 28  eggs  gathered. 

Dealings — Sold  A.  A.  Wells  &  Co.,  on  acct.,  40  bu.  potatoes  @  55  cts.  Sold  milk  tickets 
(20  gal.)  for  cash  $5,  also  3  qts.  milk  for  cash  21  cts. 

'      •  JANUARY  7 

E.  A.  Atkinson's  report: 

Labor — 7  hr.  self  and  team  getting  wood  from  timber,  2  hr.  self  and  team  delivering 
rnerchandise,  1  hr.  in  care  of  hogs. 

Product — 50  posts. 

Dealings — Sold  for  cash  60  posts  @  20  cts. 
E.  P.  Johnson's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  4  hr.  in  dairy. 

Product— 27  gal.  milk. 

Dealings — Sold  for  cash  2  cords  wood  @  $5.75.  Sold  Goldleaf  Creamery  Co.,  on  acct., 
23  lb.  butter  fat  @  25  cts. 


FARM  ACCOUNTING 


17 


Jonas  Overburg's  report: 

Labor — 6^  hr.  self  and  team  delivering  merchandise,  1^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 41  eggs  gathered. 

Dealings — Sold  A.  A.  Wells  &  Co.,  on  acct.,  250  hd.  cabbage  @  6  cts.  Sold  milk  tick- 
ets (16  gal.)  for  cash  $4. 


WAGE  CARD 

Rate  per  Hr. 

IHr. 

2Hrs. 

3Hrs. 

4Hrs. 

5  Hrs. 

6  Hrs. 

7  Hrs. 

8  Hrs. 

9  Hrs. 

10  Hrs. 

U  Hrs. 

12  Hrs. 

10  Cts. 

10 

20 

30 

40 

50 

60 

70 

80 

90 

1.00 

1.10 

1.20 

11     " 

11 

22 

33 

44 

55 

66 

77 

88 

99 

1.10 

1.21 

1.32 

12     " 

12 

24 

36 

48 

60 

72 

84 

96 

1.08 

1.20 

1.32 

1.44 

13     " 

13 

26 

39 

52 

65 

78 

91 

1.04 

1.17 

1.30 

1.43 

1.56 

14     " 

14 

28 

42 

56 

70 

84 

98 

1.12 

1.26 

1.40 

1.54 

1.68 

15     " 

15 

30 

45 

60 

75 

90 

1.05 

1.20 

1.35 

1.50 

1.65 

1.80 

16     *' 

16 

32 

48 

64 

80 

96 

1.12 

1.28 

1.44 

1.60 

1.76 

1.92 

17    •' 

17 

34 

51 

68 

85 

1.02 

1.19 

1.36 

1.53 

1.70 

1.87 

2.04 

18     " 

18 

36 

54 

72 

90 

1.08 

1.26 

1.44 

1.62 

1.80 

1.98 

2.16 

19     " 

19 

38 

57 

76 

95 

1.14 

1.33 

1.52 

1.71 

1.90 

2.09 

2.28 

20     " 

20 

40 

60 

80 

1.00 

1.20 

1.40 

1.60 

1.80 

2.00 

2.20 

2.40 

21     " 

21 

42 

63 

84 

1.05 

1.26 

1.47 

1.68 

1.89 

2.10 

2.31 

2.52 

22     .' 

22 

44 

66 

88 

1.10 

1.32 

1.54 

1.76 

1.98 

2.20 

2.42 

2.64 

23    •• 

23 

46 

69 

92 

1.15 

1.38 

1.61 

1.84 

2.07 

2.30 

2.53 

2.76 

24     •• 

24 

48 

72 

96 

1.20 

1.44 

1.68 

1.92 

2.16 

2.40 

2.64 

2.88 

25    " 

25 

50 

75 

1.00 

1.25 

1.50 

1.75 

2.00 

2.25 

2.50 

2.75 

3.00 

ENTRIES 

This  completes  the  week's  transactions.  Count  the  cards  turned  in.  Are  there  twenty- 
one  ?  Before  making  any  entries  in  the  summary  sheets  enter  on  the  cards  the  wage  value  of 
the  time  spent  correct  to  the  nearest  cent.  Atkinson  24  cts.  per  hour,  Johnson  18  cts..  Over- 
burg  14  cts.,  team  20  cts.  Refer  to  the  wage  card  in  making  up  the  distribution  of  labor 
expense  on  each  item.  Then  enter  the  results  shown  on  the  Labor  Summary  and  Team  Use 
Summary  and  the  product  on  the  Product  Summary.  Having  distributed  the  above  three 
items,  check  back  journal  entries  of  the  transactions  which  you  have  made  with  the  entries 
appearing  on  the  back  of  the  cards. 

When  the  entries  have  been  verified,  use  pencil  footings  to  show  the  journal  in  balance. 
The  correct  footings  for  the  six  columns  in  their  order  are  $150.78,  $29.40,  $4672.72, 
$4615.91,  $204.99,  $32.  Add  the  debit  and  credit  footings  to  see  if  their  totals  are  equal. 
Subtract  the  cash  credit  column  from  the  cash  balance  shown  in  last  balance  book  plus  debit 
cash  column  of  journal.  After  proving  the  footings,  post  all  entries  found  in  the  general 
debit  and  credit  columns. 

JANUARY  8 

E.  A.  Atkinson's  report: 

Labor — 2  hr.  in  care  of  hogS: 
E.  P.  Johnson's  report: 

Labor — 6  hr.  in  dairy. 

Product— 27  gal.  milk. 
Jonas  Overburg's  report: 

Labor — 3  hr.  self  and  team  delivering  milk,  3  hr.  in  care  of  poultry,  2  hr.  in  care  of 
teams. 

Product — 32  eggs  gathered. 

JANUARY  9 

E.  A.  Atkinson's  report: 

Labor — 4  hr.  self  and  team  getting  out  wood,  4  hr.  self  and  team  delivering  posts,  3  hr. 
in  care  of  hogs. 

Product — 29  posts. 

Dealings — Sold  for  cash  100  posts  at  21  cts. 


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Ouan  F.  Pricp 


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Uuan.         P  Price 


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20  FARM  ACCOUNTING 


E.  P.  Johnson's  report: 

Labor — 3  hr.  repairing  fence,  2  hr.  self  and  team  delivering  merchandise,  4  hr.  in  dairy, 
1  hr.  self  and  team  in  care  of  orchard. 

Product — 27  gal.  milk. 

Dealings — Sold  for  cash  1  cord  wood  for  $5.25. 
Jonas  Overburg's  report: 

Labor — 6^  hr.  self  and  team  delivering  merchandise,  1^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 27  eggs  gathered. 

Dealings — Sold  Eagle  Hotel,  on  acct.,  12  gal.  milk  @  22  cts.  Sold  milk  tickets  (12 
gal.)  for  cash  $3.    Sold  W.  Cushman,  on  acct.,  1  cord  wood  for  $5.50. 

JANUARY  10 

E.  A.  Atkinson's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  hogs,  2  hr.  in  care 
of  teams. 

Dealings — Sold  for  cash  180  bu.  corn  @  57  cts.     Took  for  personal    use    from    mer- 
chandise included  in  first  inventory  480  lb.  dressed  pork  @  9  cts,  300  lb.  dressed  beef  @  6^/^ 
cts.     (Charge  E.  A.  Atkinson,  Personal.) 
E.  P.  Johnson's  report: 

Labor — 8  hr.  self  and  team  delivering  merchandise,  5  hr.  in  dairy. 

Product — 25  gal,  milk. 

Dealings — Sold  W.  Cushman,  on  acct.,  4  cords  wood  @  $5.50.  . 
Jonas  Overburg's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  3  hr.  in  care  of  poultry,  2  hr.  in 
care  of  teams. 

Product — 46  eggs  gathered. 

Deahngs — Sold  A.  A.  Wells  &  Co.,  on  acct.,  80  bu.  turnips  @  30  cts.,  16  doz.  eggs  @ 
28  cts. 

JANUARY  11 
E.  A.  Atkinson's  report: 

Labor — 7  hr.  self  and  team  working  in  timber,  2  hr.  in  care  of  hogs,  3  hr.  in  care  of 
teams. 

Dealings — Sold  W.  Cushman,  on  acct.,  3  cords  wood  @  $5.50,  on  ground. 
E.  P.  Johnson's  report: 

Labor — 10  hr.  self  and  team  working  for  A.  A.  Wells  &  Co.,  1  hr.  in  care  of  teams. 
(Enter  the  time  on  labor  card,  filling  in  the  memo  space,  "work  for  A.  A.  Wells  &  Co.") 

Dealings — Bought  of  A.  A.  Wells  &  Co.,  on  acct,  bill  of  goods  for  E.  A.  Atkinson's 
personal  use,  $29.61.  Debit  A.  A.  Wells  &  Co.,  1  day  for  man  and  team  (man  $1.80,  team 
$3)  $4.80. 

The  journal  entry  will  be  "A.  A.  Wells  &  Co.,  Dr.  $4.80;  Labor  Cr.  $1.80;  Teams  Cr.  $3."  Place  check 
marks  ( V )  in  the  folio  column  next  to  Labor  and  Teams,  to  indicate  that  these  credits  will  not  be  posted 
separately  but  will  appear  in  the  total  credits  of  these  titles  for  the  month  as  posted  from  the  summary  books. 

Jonas  Overburg's  report: 

Labor — 4  hr.  self  and  team  delivering  merchandise,  6  hr.  in  dairy,  3/2  hr.  in  care  of 
poultry. 

Product — 22  gal.  milk,  23  eggs  gathered. 

Dealings — Sold  Eagle  Hotel  Co.,  on  acct.,  12  gal.  milk  @  22  cts.  Sold  milk  tickets  (20 
gal.)  for  cash  $5. 

JANUARY  12 
E.  A.  Atkinson's  report: 

Labor — 4  hr.  self  and  team  delivering  merchandise,  5  hr.  in  dairy,  yi  hr.  in  care  of  hogs. 

Product — 24  gal.  milk. 

Dealings — Sold  W.  Cushman,  on  acct.,  2  cords  wood  @  $5.50.     Sold  Goldleaf  Cream- 
ery Co.,  on  acct.,  11  lb.  butter  fat  @  26  cts.     Paid  E.  P.  Johnson  Cash  on  account  $20. 
E.  P.  Johnson's  report: 

Labor — 10  hr.  self  and  team  working  for  A.  A.  Wells  &  Co.,  1  hr.  in  care  of  teams. 

Dealings — Debit  A.  A.  Wells  &  Co.  for  1  day  for  man  and  team  $4.80. 


FARM  ACCOUNTING  21 


Jonas  Overburg's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  poultry,  2  hr.  in 
care  of  teams. 

Product — 33  eggs  collected. 

Dealings — Sold  1  cord  wood  for  cash  $6.     Sold  milk  tickets  (8  gal.)  for  cash  $2. 

JANUARY  13 

E.  A.  Atkinson's  report: 

Labor — 2  hr.  in  timber,  9  hr.  self  and  7  hr.  team  delivering  merchandise,  ^2  hr.  in  care 
of  hogs. 

Dealings — Sold  W.  Cushman,  on  acct.^  4  cords  wood  @  $5.50. 
E.  P.  Johnson's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  4  hr.  in  dairy. 

Product — 26  gal.  milk. 

Dealings — Sold  W.  Cushman,  on  acct.,  3  cords  wood  @  $5.50. 
Jonas  Overburg's  report: 

Labor — 7 5^  hr.  self  and  team  delivering  merchandise,  ^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 26  eggs  gathered. 

Dealings — Sold  for  cash  2  cords  wood  for  $12.25. 

JANUARY  14 

E.  A.  Atkinson's  report: 

Labor — 9  hr.  self  and  team  at  auction  sale,  which  he  distributes  as  follows :  Dairy  3  hr., 
hogs  3  hr.,  teams  3  hr. 

Dealings — Bought  for  cash  1  cow  for  $39.50     (Dairy),    1    set    harness    for    $14.25 
(Teams),  6  shoats  for  $31.50   (Hogs),  sundry  household  articles  for  $3.90  (Atkinson  Per- 
sonal). 
E.  P.  Johnson's  report: 

Labor — 4  hr.  working  in  timber,  3  hr.  self  and  team  delivering  merchandise,  4  hr.  ni 
dairy. 

Product — 27  gal.  milk,  5  hogs  (farm  weight  1605  lb.) 

Dealings — Sold  for  cash  5  hogs  weighing  1568  lb.  @  $8.40  per  cwt.  (Credit  Mdse.) 
Jonas  Overburg's  report: 

Labor — 5^  hr.  self  and  team  delivering  merchandise,  2^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 34  eggs  gathered. 

Dealings — Sold  for  cash  50  bu.  corn  @  56  cts.     Sold  milk  tickets  (16  gal.)  for  $4. 

Count  the  week's  tickets  to  see  that  all  are  in — 21  in  number.  Review  your  journal 
entries,  to  see  that  all  dealings  have  been  recorded.  Foot  the  journal  column  to  see  that  the 
journal  is  in  balance.    What  is  your  cash  balance? 

Post  the  general  accounts  from  the  journal,  but  do  not  post  the  special  column  accounts 
until  the  close  of  the  month. 

Referring  to  the  report  cards,  extend  the  amount  of  each  labor  item,  and  make  the  re- 
quired entries  in  the  summary  books  as  you  were  instructed  to  do  on  Jan.  7. 

On  Jan.  9,  place  Johnson's  labor  1  hr.  in  orchard  in  miscellaneous  column. 

On  Jan.  11  and  12  place  E.  P.  Johnson's  time  for  working  for  Wells  &  Co.  in  the  miscel- 
laneous column  followed  by  the  initial  "],"  indicating  that  the  charge  against  Well^  &  Co.  has 
already  been  made  through  the  journal.  The  two  day's  use  of  team  is  entered  in  like  man- 
ner in  the  team  use  summary. 

Observe  that  the  summary  books  have  one  miscellaneous  column  each  for  unusual  items, 
with  a  memorandum  space  before  the  item  to  show  what  it  is  for.  The  two  day's  labor,  man 
and  team,  for  Wells  &  Co.  would  be  itemized  in  this  column.  Remember  that  the  totals  of 
all  labor  columns  will  at  the  end  of  the  month  be  posted  to  the  credit  of  Labor  account,  and 
of  all  special  columns  to  the  debit  of  the  department  named  at  the  head  of  the  column  with 
the  exception  of  the  miscellaneous  column,  the  debits  of  which,  if  they  concern  a  personal  ac- 
count, are  posted  from  the  journal,  as  it  is  frequently  desirable  to  have  such  items  posted  on 


22  FARM  ACCOUNTING 


the  date  of  the  transaction.  If  a  department  is  affected,  the  posting  will  be  done  at  the  end 
of  the  month. 

Observe  further  that  the  summary  books  have  a  number  of  columns  without  printed 
heads.  These  columns  are  to  be  headed  by  the  bookkeeper  at  certain  seasons  of  the  year 
when  other  departments  become  active.  Thus,  wheat  crop,  oats  crop,  corn  crop,  would  re- 
quire much  time  during  certain  months  and  would  not  be  regarded  during  other  months. 
Likewise,  the  columns  Wood  and  Posts  in  the  product  summary  will  at  a  later  date  be  dis- 
continued. The  departments  requiring  constant  entries  have  printed  heads  in  the  summary 
books. 

You  may  now  foot  in  pencil  the  summarv  columns,  adding  in  the  pencil  footings  of  the 
7th. 

As  an  experiment,  add  the  footings  of  the  labor  summary  and  see  if  the  labor  actually 
reported  agrees  with  one-half  of  your  monthly  pay  roll  of  $140.  If  it  runs  behind,  investi- 
gate. 

What  value  have  you  received  from  teams  to  date?  Is  the  output  of  milk  what  should 
be  expected?  Is  the  yield  of  eggs  satisfactory ?  Note  that  Overburg  is  spending  less  time 
attending  to  poultry  than  formerly.  Foot  in  pencil  A.  A.  Wells  &  Co.'s  account,  to  see  how 
it  stands.  Has  W.  Cushman  still  a  credit  balance?  How  much  has  E.  P.  Johnson  received? 
The  Eagle  Hotel  Co.  ordered  milk  only  twice.  Why  do  they  not  order  regularly?  Ask 
Overburg.  Does  the  Goldleaf  Creamery  Co.  owe  us  $15.09  or  $16.09?  They  settle  by  check 
monthly.  Do  we  owe  any  notes  due  soon  ?  How  much  cash  is  on  hand  ?  A  person  keep- 
ing books  should  form  the  habit  of  looking  to  his  books  for  information  about  his  business. 

JANUARY  15 

E.  A.  Atkinson's  report: 

Labor — ^  hr.  in  care  of  hogs,  i^  hr,  in  care  of  poultry,  Ij/^  hr.  in  care  of  teams. 

Product — 31  eggs  gathered.     ■ 
E.  P.  Johnson's  report: 

Labor — 4  hr.  in  dairy. 

Product — 28  gal.  milk, 
Jonas  Overburg' s  report: 

Labor — 3  hr.  self  and  team  delivering  merchandise. 

JANUARY  16 

E.  A.  Atkinson's  report: 

Labor — 3  hr.  self  and  team  getting  wood  from  timber,  3  hr.  self  and  team  delivering 
merchandise,  4  hr.  in  care  of  hogs. 

Product — 2  cords  wood.  26  posts. 

Dealings — Sold  W.  Cushman,  on  acct.,  100  posts  @  21  cts.     Paid  cash  in  full  of  the 
bank  note  due  yesterday.     (No  interest.) 
E.  P.  Johnson's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  4  hr.  in  dairy. 

Product — 28  gal.  milk. 

Dealings — Sold   for   cash    2   tons   timothy  hay  @  $9. 
Jonas  Overbnrg's  report: 

Labor — 4  hr.  self  and  team  delivering  merchandise,  ^  hr.  in  dairy,  2  hr.  in  care  of 
teams,  1^  hr.  in  care  of  poultry. 

Product — 30  eggs  gathered. 

Dealings — Sold  milk  tickets  (20  gal.)  for  cash  $5. 

JANUARY  17 

E.  A.  Atkinson  is  sick.     (Make  pencil  memo  in  his  ledger  account.) 
E.  P.  Johnson's  report:  ' 

Labor — 6  hr.  self  and  team  2  hr.  and  3  horse  team  4  hr.  getting  wood  out  from  timber. 
4  hr.  in  dairy,  3^  hr.  in  care  of  hogs. 

Product — 27  gal.  milk,  3  cords  wood,  28  posts. 
Jonas  Overbnrg's  report: 

Labor — 8  hr.  self  and  team  delivering  merchandise,  ^  hr.  in  care  of  poultry,  1  hr.  in 
care  of  teams. 


FARM  ACCOUNTING  23 


Product — 37  eggs  gathered. 

Dealings — Sold  W.  Cushnian,  on  acct.,  100  posts  @  21  cts.     Sold  milk  tickets  (8  gal.) 
for  cash  $2. 

JANUARY  18 

E.  P.  Johnson's  report: 

Labor — 4  hr.  self  and  team  getting  out  wood  from  timber,  2  hr.  self  and  team  delivering 
merchandise,  4  hr.  in  dairy,  >^  hr.  in  care  of  hogs. 

Product — 26  gal.  milk,  ^  cord  wood. 

Dealings — Sold  for  cash  2  tons  timothy  hay  for  $17.75.     Sold  to  the  Goldleaf  Creamery 
Co.,  on  acct.,  16  lb.  butter  fat  @  25  cts. 
Jonas  Overburg's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  1^/2  hr.  in  care  of  poultry,  2  hr.  in 
care  of  teams. 

Product — 26  eggs  gathered. 

Dealings — Sold  1  cord  wood  for  cash  $5.50.     Sold  to  A.  A..  Wells,  on  acct.,  20  doz. 
eggs  @  29  cts.,  milk  tickets  (12  gal.)  for  cash  $3. 

JANUARY  19 

E.  p.  Jolinson's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  4  hr.  in  dairy,  ;^  hr.  in  care  of  hogs. 

Product — 27  gal.  milk. 

Dealings — Sold  2  tons  timothy  hay  for  cash  $17.25. 
Jonas  Overburg's  report: 

Labor — 6  hr.  self  and  2  teams  delivering  merchandise,  3^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 26  eggs  gathered. 

Dealings — Sold  1^4  tons  timothy  hay  for  cash  $10.     Sold  milk  tickets   (12  gal.)    for 
cash  $3. 

JANUARY  20 
E.  P.  Johnson's  report: 

Labor — 6  hr.  repairing  fences,  4  hr.  in  dairy,  ^  hr.  in  care  of  hogs. 

Product — 26  gal.  milk. 

Dealings— Sold  to  A.  A.  Wells  &  Co.,  on  acct.,  2^  tons  timothy  hay  @  $8.50  on  the 
ground. 
Jonas  Overburg's  report: 

Labor — 8j^  hr.  self  and  team  delivering  merchandise,  ^/^  hr.  in  care  of  poultry,  2  hr. 
in  care  of  teams. 

Product — 27  eggs  gathered. 

Dealings — Sold  to  James  Goodwin,  on  acct.,  100  bu.  corn  @  59c.     Sold  milk  tickets  (8 
gal.)  for  cash  $2. 

JANUARY  21 
E.  P.  Johnson's  report: 

Labor — 4  hr.  self  and  team  delivering  merchandise,  4  hr.  in  dairy,  J/4  hr.  in  care  of  hogs. 

Product — 24  gal.  milk. 

Dealings — Sold  3  tons  timothy  hay  for  cash  $26.     Sold  the  Goldleaf  Creamery  Co.,  on 
acct.,  26  lb,  butter  fat  @  26  cts. 
Jonas  Overburg's  report: 

Labor — 4  hr.  self  and  team  delivering  merchandise,  4  hr.  in  care  of  poultry,  2  hr.   in 
care  of  teams. 

Product — 29  eggs  gathered. 

Dealings — Sold  Mrs.  Jane  Cramer,  on  acct.,  milk  tickets  (4  gal.)  $1.     Sold  milk  tickets 
(28  gal)  for  cash  $7. 

Enter  the  week's  reports  as  before. 

JANUARY  22 

E.  P.  Johnson's  report: 

Labor — 4^  hr.  in  dairy. 
Product — 25  gal.  milk. 


24  FARM  ACCOUNTING 


Jonas  Overhurg's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  hogs,  1^  hr,  in 
care  of  poultry,  2  hr.  in  care  of  teams. 

Product — 27  eggs  gathered. 

Dealings — Bought  of  A.  Gregory,  on  acct.,  10  gal.  milk  @  16  cts.  Sold  milk  tickets 
(28  gal.)  for  cash  $7. 

JANUARY  23 

E.  P.  Johnson's  report: 

Labor — 8  hr.  self  and  team  delivering  merchandise,  4^^  hr.  in  dairy.    . 

Product — 25  gal.  milk. 

Dealings — Sold  for  cash  2  cords  wood  for  $12.40. 
Jonas  Overburg's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  hogs,  ^  hr.  in  care 
of  poultry,  3  hr.  in  care  of  teams,  4  hr.  for  Mr.  Atkinson  personally  (charge  to  Atkinson's 
personal  account  through  labor  summary  at  close  of  month.) 

Product — 28  eggs  gathered. 

Dealings — Sold  A.  A.  Wells  &  Co.,  on  acct.,  8  doz.  eggs  @  30  cts.  Sold  milk  tickets 
(32  gal.)  for  cash  $8.     Bought  of  A.  Gregory,  on  acct.  8  gal.  milk  @  16  cts. 

JANUARY  24 

E.  P.  Johnson's  report: 

Labor — 7  hr.  self  and  team  delivering  merchandise,  5  hr.  in  dairy. 

Product — 26  gal.  milk. 

Dealings — Sold  A.  A.  Wells  &  Co.,  on  acct.,  62  bu.  oats  @  36  cts.,  45  bu.  potatoes  @ 
49  cts. 
Jonas  Overhurg's  report: 

Labor — 3  hr.  self  and  team  getting  out  wood  from  timber,  5  hr.  self  and  team  deliver- 
ing merchandise,  1  hr.  in  care  of  hogs,  ^  hr.  in  care  of  poultry,  1^^  hr.  in  care  of  teams. 

Product — 31  posts,  27  eggs  gathered. 

Dealings — Bought  of  A.  Gregory,  on  acct.,  12  gal.  milk  @  16  cts.  Sold  Mrs.  Jane 
Cramer,  on  acct.,  milk  tickets  (4  gal.)  $1.  Sold  Eagle  Hotel  Co.,  on  acct.,  10  gal.  milk  @ 
22  cts.    Sold  milk  tickets  (20  gal.)  for  cash  $5. 

JANUARY  25 

E.  P.  Johnson's  report: 

Labor-^7  hr.  self  and  team  delivering  merchandise,  4^^  hr.  in  dairy. 

Product — 25  gal.  milk. 

Dealings — Sold  1^  tons  prairie  hay  for  cash  @  $5.25.    Sold  to  A.  A.  Wells  &  Co.,  on 
acct.,  61  bu.  turnips  @  30  cts. 
Jonas  Overhurg's  report: 

Labor — 2^  hr.  chopping  wood  in  timber,  5  hr.  self  and  team  delivering  merchandise, 
y2  hr,  in  care  of  hogs,  1  hr.  in  care  of  poultry,  1^  hr.  in  care  of  teams. 

Product — 23  eggs  gathered. 

Dealings — Bought  of  A.  Gregory,  on  acct.,  8  gal.  milk  @  16  cts.     Sold  milk  tickets 

(32  gal)  for  cash  $8. 

JANUARY  26 
E.  P.  Johnson's  report: 

Labor — 6^  hr.  self  and  team  delivering  merchandise,  5  hr.  in  dairy. 

Product — 26  gal.  milk. 

Dealings — Sold  W.  Cushman,  on  acct.,  100  posts  @  21  cts. 
Jonas  Overhurg's  report: 

Labor — 4^  hr.  self  and  team  delivering  merchandise,  >^  hr.  in  care  of  hogs,  2  hr.  in 
care  of  poultry,  1^  hr.  in  care  of  teams,  2  hr.  work  for  Mr.  Atkinson. 

Product — 26  eggs  gathered. 

Dealings — Bought  of  A.  Gregory,  on  acct.,  10  gal.  milk  @  16  cts.  Sold  Eagle  Hotel 
Co.,  on  acct.,  10  gal.  milk  @  22  cts.    Sold  milk  tickets  (16  gal.)  for  cash  $4. 

JANUARY  27 

E.  P.  Johnson's  report: 

Labor — 7  hr.  self  and  team  delivering  merchandise.  4^  hr.  in  dairy. 


FARM  ACCOUNTING  25 


Product — 26  gal.  milk. 

Dealings — Sold  for  cash  87  bu.  wheat  @  96  cts.  Paid  cash  for  repairs  on  wagon  $3.50. 
Jonas  Overburg's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  hogs,  1  hr.  in  care  of 
poultry,  1  hr,  in  care  of  teams,  2  hr.    work  for  Mr.  Atkinson. 

Product — 29  eggs  gathered. 

Dealings — Sold  Goldleaf  Creamery  Co.,  on  acct.,  15  lb.  butter  fat  @  26  cts. 

JANUARY  28 

E.  P.  Johnson's  report: 

Labor — 7  hr.  self  and  team  delivering  merchandise,  4^  hr.  in  dairy. 

Product — 25  gal.  milk. 

Dealings — Sold  for  cash  98  bu.  corn  @  57  cts.     Paid  Dr.   Burrows  cash  $25  for  Mr. 
Atkinson's  account. 
Jonas  Overhurg's  report: 

Labor — 6  hr.  self  and  team  delivering  merchandise,  ^  hr.  in  care  of  hogs,  ly^  hr.  in 
care  of  poultry,  1^  hr.  in  care  of  teams,  1  hr.  work  for  Mr.  Atkinson. 

Product — 24  eggs  gathered. 

Dealings — Sold  milk  tickets  (16  gal.)  for  cash  $4. 

Enter  the  week's  report  as  before.  Note  that  the  charges  for  labor  for  E.  A.  Atkin- 
son, personal,  may  be  made  through  the  summary  book,  as  there  is  no  haste  in  posting  this 
account.  Write  his  name  at  top  of  the  next  unused  column  in  summary  book  and  carry 
charges  as  in  other  columns. 

The  work  for  the  three  remaining  days  of  the  month  will  now  be  taken  up,  after  which 
the  month's  summaries  will  be  journalized  and  posted,  and  a  trial  balance  will  be  taken. 
Note  that  Johnson  and  Overburg  carry  out  some  unusual  transactions  which  the  student 
should  take  time  to  enter  correctly. 

JANUARY  29 

E.  P.  Johnson's  report: 

Labor — 5  hr.  in  dairy. 

Product — 26  gal.  milk. 
Jonas  Overburg' s  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  1  hr.  in  care  of  hogs,  1^^  hr.  in 
care  of  poultry,  2  hr.  in  care  of  teams. 

Product — 19  eggs  gathered. 

JANUARY  30 

E.  P.  Johnson's  report: 

Labor — 7  hr.  self  and  team  delivering  merchandise,  4^  hr.  in  dairy,  1  hr.  work  for  Mr. 
Atkinson. 

Product — 24  gallons  milk. 

Dealings — Sold  for  cash  2  cords  wood  for  $12.75,  kept  out  cash  $5  on  account,  paid 
from  cash  collected  for  wood  $2  to  drug  store  for  items  for  Mr.  Atkinson. 
Jonas  Overburg' s  report: 

Labor — 6  hr.  self  and  team  and  2  hr.  use  of  one  extra  horse  in  delivering  merchandise, 
1  hr.  in  care  of  hogs,  1  hr.  in  care  of  poultry,  2  hr.  in  care  of  teams. 

Product — 18  eggs  gathered. 

Dealings — Sold  milk  tickets  (16  gal.)  for  cash  $4.  Sold  Eagle  Hotel  Co.,  on  acct.,  12 
gal.  Milk  @  22  cts.  Sold  E.  A.  Atkinson,  on  acct.,  milk  tickets  (16  gal.)  @  16  cts  per  gal. 
In  reporting  cash  with  his  ticket,  Overburg  could  produce  only  $2.95;  charge  him  with  the 
shortage. 

JANUARY  31 

E.  P.  Johnson's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  4^  hr.  in  dairy. 

Product — 23  gal.  milk. 

Dealings — Took  20  bu.  wheat  to  mill  (estimated  at  market  price,  96  cts.  per  bu.)  and 
brought  back  227  lb.  bran  and  shorts  (charge  to  Merchandise  at  $1.20  per  cwt.)  and  455  lb. 
flour  (charge  to  E.  A.  Atkinson,  personal,  for  the  diflference  between  the  market  value  of  the 


26 


FARM  ACCOUNTING 


wheat  and  the  value  of  the  feed  taken  out. )     Bought  of  A.   A.   Wehs  &  Co.   on  Atkinson's 
account  1  pair  of  gloves  at  80  cts.,  for  Johnson's  personal  use. 
Jonas  Overhiirg's  report: 

Labor — 5  hr.  self  and  team  delivering  merchandise,  ^^  hr.  in  care  of  hogs,  1  hr.  in  care 
of  poultry,  2  hr.  in  care  of  teams,  1^  hr.  work  for  Mr.  Atkinson. 

Product — 22  eggs  gathered. 

Dealings — Sold  Mrs.  Jane  Cramer,  on  acct.,  milk  tickets  (4  gal.)  $1.  Sold  milk  tickets 
(32  gal.  @  25  cts.)  for  cash  and  reports  cash  $6.75.  Sold  Goldleaf  Creamery  Co.,  on  acct., 
18  lb.  butter  fat  @  27  cts. 

Enter  last  three  days,  which  close  the  month,  on  the  same  plan  as  the  preceding  weekly 
reports. 

CLOSING  THE  MONTH 

Cash:  Mr.  Atkinson,  who  is  assumed  to  have  charge  of  the  cash,  finds  that  the  stub  of 
his  bank  check  book  shows  that  his  cash  balance  in  the  bank  is  $495.67  and  he  has  cash  in 
pocket  $61.19,  making  total  cash  $  The  cash  carried  over  from  last  month   (see 

trial  balance  book),  plus  the  debit  cash  footing  of  the  current  month,  less  the  credit  cash 
footing  equals  $  showing  the  actual  cash  on  hand  short  $  Charge  the 

shortage  to  E.  A.  Atkinson's  personal  account  and  credit  cash. 

Products:  From  the  products  summary  compute  the  totals  of  the  different  columns  at 
farm  prices :  Milk  at  16  cts.  per  gal.  Eggs  at  26  cts.  per  doz..  Wood  at  $5  per  cord.  Posts 
at  18  cts.  each.  Hogs  at  $7.55  per  cwt.  Charge  their  total  to  Mdse.  (general  column)  and 
credit  the  respective  accounts  affected;  i.  e..  Real  Estate,  Dairy,  Hogs,  and  Poultry.  (In 
charging  and  crediting  departments  from  the  summaries,  enter  the  titles  in  the  order  of  the 
ledger  accounts  for  convenience  in  posting.     See  model.) 

Feed:     E.  P.  Johnson  turns  in  feed  ticket  for  the  month  which  reads  as  follows : 


Business  Dealings 


/a  O^-  '^^y<S^^rZ^yi^  £:^C^^-t^ 


,^_^,J::<^^^L/2:.^^^^ 


>^^ 


^^A^t^ 'S-i?--L^y 


^^^-^^-^£_^ 


K^_%  ^^Z^-^gu/^-^^-z^^-^-^"^^?^^^^?^. 


-l^^i.^..(U^  J'J 


A 


IjL 


Estimate  the  feed  used  at  inventory  prices. 

Overburg  turns  in  a  feed  ticket  as  follows : 

Feed  for  horses  for  month:  Timothy  hay  3100  lbs.,  Prairie  hay  ^  ton,  corn  25  bu., 
oats  35  bu.    Sundries  from  mdse.  $3. 

Feed  of  Poultry  charged  with  inventory  No.  38  in  full. 

Mr.  Atkinson  makes  out  the  following  ticket : 

Feed  of  Chattels  for  month:  Prairie  hay  V/\  tons.  Clover  Yz  ton.  Corn  20  bu.,  Oats 
10  bu.     Feed  of  hogs  for  month :     Corn  65  bu.,  Oats  30  bu.,  skim  milk  330  gal.  at  5  cts. 

Journalize  as  in  model. 

Labor  Charge:  Atkinson  also  makes  a  ticket  crediting  E.  A.  Atkinson  5^  month 
wages,  Johnson  full  month  and  Jonas  Overburg  full  month  at  the  prices  agreed  upon  which 
are  (or  should  be)  noted  in  their  ledger  accounts.  On  the  same  ticket  he  enters  a  memo, 
"Labor  acct.  Dr.  to  E.  A.  Atkinson,  Personal,  board  Johnson  and  Overburg  1  month  $30." 

Labor  Distribution:  Foot  the  labor  summary  and  charge  each  department  according 
to  headings  crediting  Labor  with  entire  amount  as  in  model. 


FARM  ACCOUNTING 


27 


(/f /«^/ 


// 


J'c 


^  /J 


2 
I 
Z 
/ 
i 
Z 
2 
Z 


X^4^-^€^^^^<g^^-g^I^^<>>^>z<>->^-<:e^^<:^:.^ 


^^^a-J-t^^ty 


f^jb^^^^J-t^^^H-n/i 


fh^-C^.--i-^nUt^y,  .,  (^^6«.,C^^Qltn^'/l'  /^ 


/^7 


^- 


^v/' 


/'/ 


// 
^ 


/^ 


Note  the  IVIiscellaneous  column  which  has  a  charge  to  Orchard  18  cts.,  two  items 
amounting  to  $3.60  which  charge  to  '']o\xx\\2X''  (because  previously  credited  in  journal  with- 
out posting).     Credit  the  total  to  Labor. 

Team  Use  Distribution:  Foot  the  team  use  summary  and  charge  each  department  ac- 
cording to  headings  crediting  Teams  with  the  total  as  in  summary.  Items  in  the  miscellane- 
ous column  should  be  journalized.     See  model. 

Closing  the  Journal:  Carry  the  special  columns  (Merchandise  and  Cash)  into  the  gen- 
eral columns  and  foot  the  general  columns  to  show  in  balance. 

Post  the  ledger.  Pencil-foot  the  ledger,  and  take  a  trial  balance,  recording  it  in  the  pair 
of  columns  following  the  one  recorded  Jan.  1. 

SALES  SUMMARY  (AUXILIARY) 

For  purposes  of  comparison,  turn  to  the  sales  summary  and  write  in  the  headings,  if 
they  are  not  already  printed,  the  names  of  the  following  products  which  constitute  the  prin- 
cipal sales  of  the  month :  Corn,  Oats,  Wheat,  Timothy,  Milk,  Butter,  Wood,  Posts,  Eggs, 
Potatoes,  and  Miscellaneous.'  From  the  cards  enter  the  quantity  and  selling  amount  of  each 
item,  and  foot  in  pencil  or  red  ink.  This  will  give  an  exhibit  of  the  direction  of  sales  during 
the  month  and  will  afford  a  valuable  reference  for  next  January.     Also  the  products  on  hand 


28  FARM  ACCOUNTING 


can  be   found  by  adding  to   inventory  Jan.    1,  the  amount  produced  and  subtracting  the 
amount  sold  thus :     Inventory  Jan.  1,  20  cords  wood  plus  January  product  IT^^  cords,  less 
January  sales  29  cords,  equals  8^4  cords  that  should  be  on  hand. 
With  your  ledger  before  you,  answer  the  following  questions  : 

1.  Cash  account — How  much  cash  was  received  during  the  month?    How  much  paid? 

2.  Merchandise  account— What  was  the  cost  of  delivering  the  products  sold  during 
the  month  ?  What  was  the  farm  value  of  the  month's  production  ?  How  much  of  the  farm 
production  was  used  again  for  feed?     How  much  was  sold? 

3.  Real  Estate  account — What  was  the  value  of  labor  and  team  use  put  into  real 
estate  during  the  month  ?  What  was  the  salable  product  ?  Is  this  account  likely  to  be  as 
active  as  here  shown  during  the  remainder  of  the  year.  What  is  the  6%  rental  value  of  the 
real  property  devoted  to  department  uses?  Is  all  real  property  now  used  in  departments? 
What  part  is  not? 

4.  Chattels  account — How  much  money  is  now  invested  in  unclassified  animals  or 
other  personal  property  ? 

5.  Dairy  account — Is  there  a,  profit  or  loss  shown  in  dairy  during  the  month  ?  How 
many  cows  are  there?  \\'hat  was  the  value  of  the  labor  on  dairy  for  January?  Of  feed? 
Is  the  product  computed  at  farm  price  or  market  price  ?     Why  ? 

6.  Teams  account — What  was  the  cost  of  care  and  feed  during  the  month?  What  did 
their  use  amount  to  at  20  cents  per  hour? 

7.  Orchard  account — Was  any  investment  made  in  orchard  during  the  month  ?  How 
much  ? 

8.  Hogs  account — How  much  labor  and  feed  were  expended  on  hogs  during  month? 

9.  Poultry  account — Does  the  ledger  show  a  profit  in  the  poultry  department? 

10.  Labor  account — Was  the  time  actually  reported  in  labor  greater  than  expected  ? 
How  much  ?  If  expectations  were  exactly  met,  this  account  would  balance  out  without  gain 
or  loss. 

11.  Among  the  financial  accounts,  how  do  we  stand  with  Wells  &  Co.  ?  How  much  has 
Mr.  Atkinson  been  charged  with  during  the  month  ?  Some  accounts  should  be  collected  and 
some  accounts  should  be  paid.    Name  them. 

FEBRUARY 

Remark. — The  card  system  of  records  has  been  demonstrated  in  the  January  business.  To  avoid  tire- 
some repetition,  the  cards  and  summary  books  need  not  be  written  in  the  following  work,  which  has  been 
expanded  to  cover  one  year's  time  in  order  to  illustrate  the  farm  turnover.  The  value  of  the  cards  in  checking 
up  time  and  keeping  every  one  busy,  as  well  as  providing  vouchers  for  all  charges  and  entries,  has  been  well 
demonstrated  in  factories  in  general  and  should  not  be  neglected  on  the  farm.  The  following  memoranda  which 
include  monthly  summaries  is  to  be  cn'.ered  in  the  journal  direct.  It  is  assumed  that  the  report  cards  have 
been  used,  although  they  are  not  to  be  prepared  by  the  student. 

Feb.  1.  E.  A.  Atkinson  returns  to  work.  (Ledger  memo.)  Egg  product  of  January 
in  excess  of  sales  should  be  charged  to  E.  A.  Atkinson,  personal,  @  24  cts.  per  dozen.  (Make 
journal  entry.) 

Received  from  Goldleaf  Creamery  Cp.  check  to  balance  account.     (Journal  entry.) 

Collected  cash  of  the  Eagle  Hotel  Co.  in  full  of  account. 

Paid  A.  Gregory  our  check  to  balance  account. 

Paid  E.  P.  Johnson  our  check  on  account  $15. 

Paid  Jonas  Overburg  our  check  to  balance  January  wage  credit. 

Daily  reports  are  assumed  to  have  been  rendered  by  Atkinson,  Johnson,  and  Overburg, 
giving  the  labor  and  product  matter  in  addition  to  above  transactions.  Consider  these  tick- 
ets entered  in  Labor,  Team  Use,  and  Product  Summaries. 

Post  and  rule  up  accounts  that  are  in  balance. 

Feb.  2.  Bought  of  W.  Cushman,  on  acct.,  a  bill  of  lumber,  brick,  etc.,  for  general 
repairs  on  buddings  and  fences  $49.16.  (Charge  Real  Estate.)  Sold  milk  tickets  (12  gal.) 
for  cash  $3. 

Feb.  3.  Sold  W.  Cushman,-  on  acct.,  50  posts  @  21  cts.  Sold  for  cash  2  cords  wood 
@  $5.75. 

Feb.  4.  Sold  Goldleaf  Creamery  Co.,  on  acct.,  16  lb.  butter  fat  @  26  cts.  Sold  milk 
tickets  (16  gal.)  for  cash  $4. 


FARM  ACCOUNTING  29 


Feb.  6.  Jonas  Overbitrg  takes  a  vacation  withont  pay  awaiting  the  opening  of  spring 
work.  Gave  him  check  for  j/^  month's  wages  i:i  full.  Sold  A.  A.  Wells  &  Co.,  on  acct.,  5 
doz.  eggs  @  26  cts.     Sold  milk  tickets  (8  gal.)  for  cash  $2. 

Feb.     7.     Bought  for  cash  17  hd.  shoats  for  $102. 

Feb.  8.  Sold  Eagle  Hotel  Co.,  on  acct.,  17  chickens,  81  lb.  @  11^  cts.  Sold  for 
cash  4  cd.  wood  @  $5.50. 

Feb.  9.  Sold  A.  A.  Well§  &  Co.,  on  acct.,  80  bu.  potatoes  @  55  cts.  Bought  of  A.  A. 
Wells  &  Co.  sundry  items  of  stock  food  per  bill  $9.60.  (Charge  Mdse.)  Sold  milk  tickets 
(16  gal.)  for  cash  $1. 

Feb.  10.  Paid  cash  $27  for  $3000  insurance  on  buildings,  running  five  years.  (Charge 
Real  Estate.)     Sold  milk  tickets  (20  gal.)   for  cash  $5. 

Feb.  11.  Sokl  Goldleaf  Creamery  Co.,  on  acct.,  40  lb.  butter  fat  @  26  cts.  Sold  for  cash 
2  cd.  wood  @  $5.25.  Bought  bill  of  furniture  for  E.  A.  Atkinson,  personal,  paying  for 
same  by  check,  $16.27. 

Paid  Dr.  C.  W^illiams  by  check,  for  veterinary  surgical  attendance  on  work  horse  $9.50. 
Sold  milk  .tickets  (20  gal.)  for  cash  $5.     Bought  for  cash  2000  lb.  mill  feed  for  $20. 

Feb.  13.  Bought  a  work  horse,  "Jim"  for  $120,  trading  in  exchange  the  horse  "Joe" 
and  paying  check  for  the  difiference  $40.     Soil  milk  tickets  (60  gal.)  for  cash  $15. 

Feb.  14.  Bought  of  A.  A.  Wells  &  Co.,  on  acct.,  a  bill  of  goods  for  E.  A.  Atkinson's 
personal  use  $40.69.  Sold  A.  A.  Wells  &  Co.,  on  acct.,  15  doz.  eggs  @  25  cts.  Sold  Gold- 
leaf  Creamery  Co.,  on  acct.,  40  lb.  butter  fat  @  24  cts. 

Feb.  15.     Bought  for  E.  P.  Johnson's  personal  use,  sundry  items  $3.96,  paid  by  check. 

Feb.  16.     Sold  Eagle  Hotel  Co.,  12  gal.  milk  @  22  cts.,  on  acct. 

Feb.  17.  Sold  for  cash  3  hogs,  800  lb.,  @  $7.50.  Bought  of  A.  Gregory,  on  acct.,  15 
gal.  milk  @  16  cts. 

Feb.  20.  Boarded  Herbert  Jones,  a  nursery  agent,  4  weeks  for  $15,  on  acct.  Jones  is 
to  make  payment  in  fruit  trees  later  on.     Sold  milk  tickets  (68  gal.)  for  cash  $17. 

Feb.  25.  Sold  Goldleaf  Creamery  Co.,  on  acct.,  35  lb.  butter  fat  @  24  cts.  Sold  A.  A. 
Wells  &  Co..  on  account,  12  doz.  eggs  @  25  cts. 

Feb.  27.  Sold  milk  tickets  (208  gal.)  for  cash  $52.  Received  of  Mrs.  Jane  Cramer 
cash  on  acct.  $2. 

Feb.  28.  Sold  for  cash  4  tons  timothy  hay  @  $8.50.  Sold  Goldleaf  Creamery  Co.,  on 
acct.,  20  lb.  butter  fat  @  24  cts.  Charge  E.  A.  Atkinson,  Personal,  with  18  doz.  eggs  @ 
25   cts. 

SUMMARIES  FEBRUARY  28 

The  summary  tickets  and  books  (assumed  to  have  been  kept  as  in  January)  give  the  fol- 
lowing totals : 

Products:  Milk  764  gal.  @  16  cts..  Eggs  629  @  25  cts.  per  doz.,  Wood  22  cords  @ 
$1.50,  Posts  160  @  18  cts..  Hogs  800  lb.  @  $7.30,  Chickens  81  lb.  @  11  cts.  (Charge  Mdse. 
and  credit  departments. ) 

Chattels  Feed:  1  ton  prairie  hay  @  $4,  ^  ton  clover  @  $7.50,  15  bu.  corn  @  50  cts., 
10  bu.  oats  @  35  cts. 

Dairy  Feed:  2100  lb.  mill  feed  @  $1.05  per  cwt.,  24  bu.  oats  @  35  cts.,  20  bu.  corn 
@  50  cts.",  3  ton  clover  @  $7.50,  sundry  feed  $2.30. 

Team  Feed:  Timothy  2500  lb.  @  $8  per  ton,  1  ton  prairie  hay  @  $4,  22  bu.  corn  (ql 
50  cts.,  20  bu.  oats  @  35  cts.,  sundries  $2.50. 

Hog  Feed:  60  bu.  corn  @  50  cts.,  30  bu.oats  @  35  cts.,  20  bu.  potatoes  @  30  cts., 
319  gal.  skim  milk  @  5  cts. 

Poultry  Feed:  3  bu.  corn  @  50  cts.,  3  bu.  oats  @  35  cts.,  12  hd.  cabbage  @  5  cts.,  1 
bu.  potatoes  @  30  cts. 

Labor  Charge:  Wages  Atkinson  1  mo.  $60;  Johnson  1  mo.  $30;  Overburg  y^  mo. 
$3.33.     Board  Johnson  $15,  Overburg  $3. 

Labor  Diitribution:  Mdse.  $24.50,  Real  Estate  $20.70,  Dairy  $33.80,  Teams  $15.68, 
Hogs  $8.94,  Poultry  $5.22. 

Team  Use  Distribution:     Mdse.  $42.30,  Real  Estate  $12.60. 

Journalize,  post,  and  take  a  trial  balance. 


30  •  FARM  ACCOUNTING 


MARCH 

Mar.  1.  The  division  of  farm  land  for  the  year  follows :  Charge  the  titles  given  with 
the  rental  at  6%  on  valuation  of  $100  per  acre  and  any  other  debits  noted  below : 

Small  Fruit,  rental  on  1  acre  $6  and  shrubbery  worth  $30 ;  Garden,  2  acres ;  Potato  Crop 
5  acres ;  2nd  year  Timothy  Crop,  10  acres,  1st  year  Clover,  11  acres;  Corn  Crop,  40  acres; 
Oats  Crop,  40  acres ;  Wheat  Crop,  15  acres. 

Note  that  1  acre  home  ground  and  1  acre  orchard  have  already  been  charged.  The  34 
acres  remaining  consist  of  woodland  and  pasture  and  will  not  be  taken  out  of  the  Real  Estate 
account. 

Enter  the  above  eight  appropriations  in  the  journal  crediting  Real  Estate  with  tlie  total 
and  post  to  the  ledger  in  the  order  namail,  pages  11  to  18. 

Note. — Small  sales  of  butter,  eggs,  poviltry  and  the  like,  which  will  occur  at  intervals  in  the  future,  will 
be  entered  in  the  sales  summary  sheets  first  and  totaled  from  the  summary  to  the  journal  monthly.  See 
note  on  Sales  Summary,  page  5. 

Mar.  2.  Sold  to  the  Sindlinger  Dairy  Company  the  six  cows  numbered  in  the  inven- 
tory 9,  11,  12,  13,  14,  and  15,  for  $290,  together  with  the  good  will  of  the  milk  route  which  is 
estimated  to  be  worth  the  unused  milk  tickets  in  customers'  hands. 

Received  checks  from  Goldleaf  Creamery  Co.  and  Eagle  Hotel  Co.  to  balance  their  ac- 
counts.    Paid  A.  Gregory  check  to  balance  account. 

Mar.  3.  Sold  Jonas  Overburg,  on  account,  160  posts  @  20  cts.  (farm  price).  Sold  to 
W.  Cushman,  on  account,  10  cords  wood  @  $5. 

Mar.  11.     Sold  for  cash  6  hogs,  1300  lb.  @  $7. 

Mar.  18,  There  is  on  hand  on  this  date  among  other  items,  the  following  merchandise  : 
1153  bu.  corn,  346  bu.  oats,  9  tons  clover,  14  tons  timothy,  9  cords  wood,  88  posts,  255  bu.- 
potatoes,  59  bu.  turnips. 

From  estimates,  it  appears  that  there  will  be  needed  to  carry  through  the  season  600 
bu.  corn,  all  oats  on  hand,  5  tons  clover  hay,  all  timothy,  50  bu.  potatoes. 

Sold  all  clover  hay  in  excess  of  requirements  for  cash  at  $7.90  per  ton. 

Mar.  20.  Sold  W.  Cushman,  on  acct.,  all  wood  at  $5.50  per  cord  and  all  posts  on  hand 
at  21  cts.  each. 

Mar.  22.  Sold  all  potatoes  in  excess  of  requirements  to  A.  A.  Wells  &  Co.  on  account 
@  57  cts.  per  bu. 

Sold  all  corn  in  excess  of  requirements  for  cash  .@  53  cts.  per  bu. 

Mar.  29.     Sold  all  turnips  on  hand  to  A.  A.  W^ells  &  Co.,  on  acct.,  @  40  cts. 

Mar.  30.     Paid  cash  for  invoice  of  seed  $67.90.     (Charge  Mdse.) 

Mar.  31.  Sold  for  cash,  during  the  month,  per  sales  summary,  dairy  products  $44.60, 
and  poultry  products  $7. 

There  was  used  for  seed  20  bu.  wheat  @  $1.50,  120  bu.  oats  @  40  cts.,  and  2^  bu. 
clover  @  $8.     (Charge  departments  and  credit  Mdse.  in  general  column.) 

During  the  month  62  posts  were  used  at  farm  price,  18  cts.  each,  for  repairs  of  fences. 
•(  Charge  Real  Estate. )  * 

Paid  taxes  on  Real  Estate  $109.27 ;  and  on  personal  property  $25.08,  divided  as  follows : 
Merchandise  $13.11,  Chattels,  $1.22,  Dairy  $2.80,  Teams  $6.27,  Hogs  $1.68. 

The  appreciable  manure  distribution  for  the  winter  season  is  as  follows :  Barn  yard 
manure  63  tons  @  $2  (credit  Dairy)  ;  stable  manure  42  tons  @  $2.20  (credit  Teams)  ;  hog 
manure  58  tons  @  $2.25  (credit  Hogs)  ;  Poultry  manure  3  tons  @  $4.50  (credit  Poultry). 
Charge  all  farm  manure  to  Real  Estate. 

Remark. — The  student  is  now  in  position  to  note_  the  three  distinct  interests  of  which  the  farmer  must 
keep  account  if  he  properly  analyzes  his  farm  organization. 

(1)  The  land  interest,  or  the  investment  in  the  real  estate,  necessary  to  carry  on  the  farm  processes. 
Investment  in  land  is  reasonably  free  from  ordinary  business  risk.  If  it  produces  the  equivalent  of  prevailing 
interest  rates  on  safe  investments,  the  results  are  satisfactory.  This  return  consists  of  the  credits  from  the 
rental  charged  to  crops  (or  to  tenants  if  rented  to  others),  and  from  the  miscellaneous  returns  from  unclassified 
portions  of  the  real  estate  illustrated  by  wood  and  pasturage.  These  credits  are  diminished  by  the  cost  of 
maintenance  including  repairs,  insurance,  taxes,   common  fertilizer,  etc. 

(2)  The  manufacturing  interest,  which  involves  the  outlays  including  rental  of  the  land  and  the  returns 
from  producing  farm  merchandise. 

(3)  The  trading  interest,  involving  the  disposition  of  the  merchandise  either  by  selling  it  or  turning  it 
again  into  production.  The  attendant  expenses  of  storage,  preparation  for  sale,  and  delivery  are  placed  against 
the  profit  of  market  prices  when  sold  over  farm  prices  when  produced. 

A  scheme  of  accounting  to  be  a  reliable  guide  must  separate  these  three  interests,  and  consider  the  cost 
and  profits  of  each  as  apart  from  the  others. 


FARM  ACCOUNTING  31 


SUMMARIES  MARCH  31 

Products:  340  gal.  milk  @  16  cts.^  507  eggs  @  20  cts.  per  doz.,  6  hogs,  1320  lb.  @ 
$6.90. 

Chattels  Feed:  1  ton  prairie  hay  @  $4,  yi  ton  clover  @  $7.50,  15  bii.  corn  @  50  cts., 
10  bu.  oats  @  35  cts. 

Dairy  Feed:  800  lb.  mill  feed  @  $1.05,  10  bu.  oats  @  35  cts.,  12  bu.  corn  @  50  cts., 
1^  ton  clover  @  $7.50,  sundry  feed  @  $1.50. 

Team  Feed:  1  ton  timothy  @  $8,  ^  ton  prairie  @  $4,  24  bu.  corn  @  50  cts.,  30  bu. 
oats  @  35  cts.,  sundry  feed  $1.50. 

Hog  Feed:  30  bu.  corn  @  50  cts.,  20  bu.  oats  @  35  cts.,  310  gal.  skim  milk  @  5  cts., 
10  bu.  potatoes  @  30  cts. 

Poultry  Feed:  3  bu.  corn  @  50  cts.,  3  bu.  oats  @  35  cts.,  12  hd.  cabbage  @  5  cts.,  2 
bu.  potatoes  @  30  cts. 

Labor  Charge:  E.  A.  Atkinson,  personal,  wages  $60,  board  of  help  $15;  E.  P.  Johnson 
wages  $30. 

Labor  Distribution:  Mdse.  $16.60,  Real  Estate  $22.20,  Dairy  $12.10,  Teams  $16.80, 
Hogs  $7.81,  Poultry  $5.69,  Clover  Crop  $4,  Oats  Crop  $29.50,  Wheat  Crop  $6.50. 

Team  Use  Distribution:  Mdse.  $17.80,  Real  Estate  $33.49,  1st  year  Clover  Crop  $7, 
Oats  Crop  $42.80,  Wheat  Crop  $8.40. 

Journalize,  post  and  take  trial  balance. 

QUESTIONS 

1.  How  much  is  the  cash  balance? 

2.  What  is  the  value  of  feed  used  in  March  ?• 

,  3.  Name  five  items  other  than  labor  or  team  use  that  have  been  charged  to  Real  Estate 
account. 

4.  Is  the  tendency  of  Real  Estate  account  toward  an  exhibit  of  5%  profit  at  the  end  of 
the  year  ? 

5.  How  does  the  product  of  dairy  for  March  compare  with  that  for  February? 

6.  Why  are  field  crops  charged  with  ground  rent  ? 

7.  What  three  distinct  interests  are  involved  in  owning  and  operating  a  farm? 

8.  Why  are  the  gains  from  the  use  of  Real  Estate  placed  at  a  moderate  figure  ? 

9.  What  accounts  are  used  to  represent  the  operations  in  farm  production  ? 
10.     How  is  the  Merchandise  account  used? 

APRIL 

Apr.  1.  Jonas  Overburg  returns  to  work.  He  is  to  receive  $25  per  month  and  board 
from  this  date.     (Ledger  memo.) 

Bought  for  cash  a  bill  of  special  fertilizer  for  garden  $31.70.  (Special  fertilizer  should 
be  charged  to  the  department  to  which  it  is  applied.) 

SUMMARIES  APRIL  30 

Merchandise  Sales:  Dairy  and  poultry  products  have  been  sold  to  E.  A.  Atkinson,  per- 
sonal, on  acct.,  $8.70;  for  cash  $22.40.     (Credit  Mdse.) 

Remark. — The  student  will  note  that  through  the  spring  and  summer  season  the  sales  will  be  numerous 
but  small,  as  it  is  planned  to  deliver  dairy  and  poultry  products,  garden  truck  and  small  fruit.  Hence  it  is  more 
convenient  to  enter  the  detailed  description  of  sales  in  the  sales  summary  book,  rather  than  the  journal.  A 
report  of  totals  is  journalized  at  the  end  of  the  month  when  cash  receipts  are  entered  as  one  item. 

Products:     Dairy  $32.40,  Poultry  $9.89. 

Seed:  Used  for  Garden  amounting  to  $7.30,  for  Potato  Crop  85  bu.  potatoes  @  80 
cts,  for  Corn  Crop  QV2  bu.  corn  @  $1.     (Credit  Mdse.) 

Feed:  Chattels  $15.80,  Dairy  $24.50,  Teams  $39.18,  Hogs  $56.80,  Poultry  $3.90. 
(Credit  Mdse.) 

Labor  Charge:  E.  A.  Atkinson  wages  $60  and  board  of  hands  $30,  E.  P.  Johnson 
wages  $30,  Jonas  Overburg  wages  $25. 

Labor  Distribution:  Mdse.  $4.80,  Real  Estate  $8.32,  Chattels  $1.30,  Dairv  $13.50, 
Teams  $15.60,  Hogs  $8.10,  Poultry  $2.30,  Orchard  $3.  Small  Fruit  $6.20,  Garden  $19, 
Potato  Crop  $8,  Corn  Crop  $33.40. 


32  FARM  ACCOUNTING 


Team  Use:  Mdse.  $6.20,  Orchard  $1,  Small  Fruit  $2,  Garden  $3.50,  Potato  Crop 
$5.50,  Corn  Crop  $61.20. 

Journalize,  post  and  take  trial  balance. 

Questions  from  Trial  Balance.  What  is  indicated  by  the  fact  that  Poultry  balance  has 
passed  from  the  debit  to  the  credit  side?  What  is  indicated  by  the  Labor  balance?  How 
much  has  been  invested  in  each  of  the  general  crops  ?  Why  is  the  Merchandise  balance  re- 
duced to  so  small  an  amount  ? 

MAY 

Reminder. — The  headings  in  the  summary  books  should  be  filled  in  by  the  bookkeeper  to  suit  the  titles 
to  which  distribution  is  made  in  a  given  month.  For  example,  during  May,  sales  will  be  made  of  dairy, 
poultry,  and  garden  stuff.  These  should  be  represented  by  suitable  columns  in  the  sales  summary.  It  is 
impossible  to  print  headings  in  these  books  to  suit  all  accounts  on  all  farms  or  on  the  same  farm  at  dififerent 
seasons  of  the  year.  As  these  matters  were  fully  explained  in  the  January  work,  the  student  will  not  be  re- 
quired to  repeat  the  process  here. 

May  1.  Herbert  Jones  delivered  for  credit  on  his  account  small  fruit  stock  amounting  to 
$9.80  and  special  fertilizer  for  small  fruit  $10,  orchard  $5.20.     (Charge  departments.) 

May  2.  Paid  cash  for  telephone  service  $12,  for  record  books  and  stationery  $2.50,  for 
subscription  to  farm  paper  $2,  for  repair  outfit  $9.20,  for  lubricator  $3.  (Charge  General  Ex- 
pense.    Open  an  account  with  General  Expense  and  Interest  on  page  20. ) 

General  Expense  and  Interest  are  usually  given  separate  ledger  titles  in  a  mercantile  business  where 
these  accounts  are  likely  to  be  active.  In  the  present  business  the  transactions  involving  these  titles  will  seldom 
occur,  and  for  convenience  in  ledger  and  trial  balance  the  titles  will  be  combined. 

SUMMARIES  MAY  31 

Merchandise  Sales:     For  cash  $42.60,  E.  A.  Atkinson's  acct.,  $13.75. 

Products:     Dairy  $29.40,  Poultry  $8.39,  Garden  Truck  $16.20. 

Seed  Used:     Garden  $2.35,  Corn  Crop  $2.10. 

Feed:  Chattels  $15.80,  Dairy  $24.50,  Teams  $39.18,  Hogs  $56.80,  Poultry  $3.90.  (Of 
this  amount  $18  is  for  pasturage  to  be  credited  to  Real  Estate.  The  remainder  credits  to 
Merchandise.) 

Labor  Charge:  E.  A.  Atkinson  wages  $60  and  board  of  help  $30,  E.  P.  Johnson  wages 
$30,  Jonas  Overburg  wages  $25. 

Labor  Distribution:  Mdse.  $1.35,  Real  Estate  $12.89,  Chattels  $2.50,  Dairy  $10.50, 
Teams  $16.30,  Hogs  $9.95,  Poultry  $2.15,  Orchard  $2.50,  Small  Fruit  $7.58,  Garden  $9.55, 
Potato  Crop  $8.30,  Corn  Crop  $22.50. 

Team  Use  Distribution:  Mdse.  $2.10,  Real  Estate  $4.40,  Orchard  $2,  Small  Fruit  $4, 
Garden  Truck  $4.50,  Potato  Crop  $5.50,  Corn  Crop  $32.80. 

Journalize,  post  and  take  trial  balance. 

JUNE 

June  1.  Jonas  Overburg  discontinued  work  yesterday  evening.  He  will  call  to  settle 
his  account  later. 

June  5.  Bought  of  A.  A.  Wells  &  Co.,  on  account,  for  E.  A.  Atkinson,  personal,  mer- 
chandise per  bill  $69.89. 

SUMMARIES  JUNE  30 

Merchandise  Sales:  Hogs,  dairy,  poultry,  small  fruit  and  garden  produce,  as  per  sales 
summary,  $379.32  for  cash  with  exception  of  $28.90  to  E.  A.  Atkinson,  on  personal  acct. 

Products:  Dairy  $24.90,  20  Hogs  4725  lb.  $283.50,  Poultry  $10.60,  Small  Fruit 
$8.38,  Garden  $46.93. 

Feed:  Chattels  $6.95,  Dairy  $20.19,  Teams  $36.20,  Hogs  $49.15,  Poultry  $2.29. 
(Credit  all  to  Mdse.  except  pasture  of  22  animals  at  $1  each  to  be  credited  to  Real  Estate.) 

Labor  Charge:  E.  A.  Atkinson  wages  $60  and  board  of  help  $15,  E.  P.  Johnson  wages 
$30,  cash  paid  for  work  in  garden  $30. 

Labor  Distribution:  Mdse.  $10.30,  Real  Estate  $4.60,  Chattels  $2.54,  Dairy  $9.57, 
Teams  $18.68,  Hogs  $6.40,  Poultry  $2,  Orchard  $2,  Small  Fruit  $4.40,  Garden  $38.71, 
Potato  Crop  $7.50,  Corn  Crop  $21.60. 

Team  Use  Distribution:  Mdse.  $15.26,  Orchard  $4,  Small  Fruit  $1.40,  Garden  $6.50, 
Potato  Crop  $3,  Corn  Crop  $28.76. 

Journalize,  post  and  take  trial  balance. 


FARM  ACCaUNTING  33 


JULY 

July  1.     Paid  the  semi-annual  interest  $175  on  farm  loan.      (Charge  Interest  and  post 
same  to  the  account  with  General  Expense  and  Interest.) 
Gave  Jonas  Overburg  a  check  to  balance  account. 
Received  cash  from  Mrs.  Jane  Cramer  in  full  of  account. 
Received  cash  from  W.  Cushman  in  full  of  account. 

SUMMARIES  JULY  31 

Merchandise  Sales:  Milk,  butter,  eggs,  fruit  and  garden  truck  have  been  sold  for 
$239.80,  from  which  cash  was  received  for  all  except  $21.70  on  E.  A.  Atkinson's  account. 

•    Products:     Dairy  $20.16,  Poultry  $4.20,  Orchard   $1.40,    Small.  Fruit   $19.82,   Garden 
$174.38,  Timothy  18  tons  @  6,  Clover  11  tons  @  $6. 

Feed:  Chattels  $17.83,  Dairy  $16.56,  Teams  $31.50,  Hogs  $26.50,  Poultry  $2.15. 
(Credit  Mdse.  with  all  except  $22  pasturage.) 

Labor  Charge:  E.  A.  Atkinson  wages  $50,  board  help  $15,  E.  P.  Johnson  wages  $30, 
sundry  cash  payments  $28.50. 

Labor  Distribution:  Mdse.  $16.80,  Real  Estate  $1.25,  Chattels  $3.20,  Dairv  $10.24, 
Teams  $15.20,  Hogs  $7.25.  Poultry  $3.20,  Orchard  $3.60,  Small  Fruit  $6.30^  Garden 
$34.20,  Potato  Crop  $8,  Timothy  Crop  $10.70,  Clover  Crop  $9.44,  Corn  Crop  $6.20. 

Team  Use  Distribution:  Mdse.  $24.60,  Garden  $4,  Potato  Crop  $6,  Timothy  Crop 
$8.90,  Clover  Crop  $6.66,  Corn  Crop  $9.45. 

Journalize,  post  and  take  trial  balance. 

AUGUST 

Aug.  10.  Bought  of  A.  A.  Wells  &  Co.,  on  acct.,  260  lb.  binding  twine  @  10  cts.  per 
lb.,  (200  lb.  for  oats  crop  and  60  lb.  for  wheat  crop.  Make  entry  charging  the  two  accounts 
named.) 

SUMMARIES  AUGUST  31 

Merchandise  Sales:     For  cash  $179.97,  acct.  E.  A.  Atkinson  $30.69. 

Products:  Dairy  $27.60,  Poultry  $3.70,  Orchard  $6.75,  Small  Fruit  $49.60,  Garden 
Truck,  $105.29,  2400  bu.  oats  @  30  cts.  and  40  tons  oat  straw  at  $1  per  ton,  to  be  left 
on  the  ground  for  roughage  and  manure,  300  bu.  wdieat  @  90  cts.  and  15  tons  wheat  straw 
at  75  cts.  per  ton,  left  on  the  ground  as  above.     (Charge  straw  to  Real  Estate.) 

Feed:  Chattels  $21.28,  Dairy  $15.80,  Teams  $26.59,  Hogs  $27.31,  Poultry  $2.10. 
(Pasture  $26,  remainder  Mdse.) 

Labor  Charge:  E.  A.  Atkinson  wages  $60,  board  Johnson,  threshing  crew  and  other 
help  $34.50,  E.  P.  Johnson  wages  $30.  Paid  sundry  help  cash  $8.50  and  threshing  bill 
$41.40. 

Labor  Distribution:  .Mdse.  $14.29,  Chattels  $3.88.  Dairy  $11.50,  Hogs  $6.84,  Poultry 
$1.48,  Teams  $17.39,  Orchard  $1.25,  Small  Fruit  $12.80,  Garden  $21.48,  Oats  Crop  (har- 
vesting, threshing  and  storing)  $66,  Wheat  Crop  (harvesting,  threshing  and  storing)  $17.45. 

Team  Use  Distribution:  Mdse.  $19.38,  Garden  $3.50.  Oats  Crop  (harvesting,  thresh- 
ing and  storing)  $31,  Wheat  Crop  (harvesting,  threshing  and  storing)  $10.70. 

Journalize,  post  and  take  trial  balance. 

SUMMARIES  SEPTEMBER  30 

Merchandise  Sales:  This  includes  6  hogs,  200  bu.  potatoes,  garden  truck,  dairy  and 
poultry  products  $378.60  for  cash  with  exception  of  $26.40  to  E.  A.  Atkinson  on  account. 

Products:  Dairv  $34.60,  6  Hogs  1100  lb.  $71.50.  Poultry  $5.90,  Orchard  $1.90,  Gar- 
den Truck  $209.10.  1500  bu.  Potatoes  @  35  cts. 

Feed:  Chattels  $21.28,  Dairy  $15.80,  Teams  $26.59,  Hogs  $27.31.  Poultry  $2.10. 
(Mdse.  except  $26  pasturage  and  roughage.) 

Labor  Charge:  E.  A.  Atkinson  wages  $50.  and  board  of  help  $23.40;  E.  P.  Johnson 
wages  $30 ;  cash  for  sundry  help  $18.60. 

Labor  Distribution:  Chattels  $4.69,  Mdse.  $14.30.  Dairy  $9.50,  Teams  $18.50,  Hogs 
$7.32,  Poultry  $1.48,  Orchard  $4.20,  Garden  $10.70,  Potato  Crop  $61.80. 


34  FARM  ACCOUNTING 


Team  Use  Distribution:     Mdse.  $21.60,  Garden  $1.50,  Potato  Crop  $31. 
Journalize,  post  and  take  trial  balance. 

SUMMARIES  OCTOBER  31 

Merchandise  Sales:     $228.90  (cash  $168.50,  E.  A.  Atkinson's  acct.,  the  remainder.) 

Products:  Dairy  $35.30,  Poultry  $10.49,  Garden  Truck  $16.20,  600  bu.  corn  @  40 
cts. 

Feed:  Chattels  $20.66,  Dairy  $19.44,  Teams  $32.58,  Hogs  $23.51,  Poultry  $4.20, 
(Mdse.  except  $21  pasturage  and  roughage.) 

Labor  Charge:  E.  A.  Atkinson  wages  ^^  month  $40  and  bogird  help  $15,  E.  P.  John- 
son wages  $30.  • 

Labor  Distribution:  Mdse.  $12.50,  Real  Estate  $14.30,  Chattels  $5^20,  Dairy  $10.20. 
Teams  $12.50,  Hogs  $8.31,  Poultry  $3.25,  Orchard  $36  cts.,  Coyn  Crop'$18. 

Team  Use  Distribution:     Mdse.  $16.60,  Corn  Crop  $20.       ' 

Journalize,  post  and  take  trial  balance.  '  , 

SUMMARIES  NOVEMBER  30 

Merchandise  Sales:  $181.60  (cash  $157.90,  E.  A.  Atkinson's  acct.  charged  with  re- 
mainder.) 

Products:  Dairy  $36.70,  Poultry  $13.70,  1600  bu.  corn  @  40  cts.,  and  40  acres  stalks 
@  75  cts.  left  on  ground. 

Feed:  Chattels  $20.81,  Dairy  $20.19,  Teams  $37.27,  Hogs  $25.60,  Poultry  $4.20. 
(All  Mdse.  except  $16  roughage.) 

Labor  Charge:     E.  A.  Atkinson  wages  $60,  board  help  $15;  E.  P.  Johnson  wages  $30. 

Labor  Distribution:  Mdse.  $8,  Chattels,  $6.25,  Dairy  $12.30,  Teams  $12.80,  Hogs 
$9.15,  Poultry  $6.21,  Corn  Crop  $48. 

Team  Use  Distribution:     Mdse.  $10.20,  Corn  Crop  $53.30. 

Journalize,  post  and  take  trial  balance. 

DECEMBER 
Dec.  30.     Paid  the  semi-annual  interest  on  loan  due  Jan.  1. 

SUMMARIES  DECEMBER  31 

Merchandise  Sales:     $78.10    (cash  $52.20,  E.  A.  Atkinson  remainder.,) 

Products:     Dairy  $38.30,  Poultry  $18.40. 

Feed:  Chattels  $21.60,  Dairy  $21.14,  Teams  $30.62,  Hogs  $26.40,  Poultry  $4.70. 
(Of  this  $12  is  roughage.) 

Labor  Charge:  E.  A.  Atkinson  bill  for  board  of  Johnson  $15,  E.  P.  Johnson  wages 
$30 

Labor  Distribution:  Mdse.  $3,  Chattels  $6.25,  Dairy  $12.30,  Teams  $12.50,  Hogs 
$8.40,  Poultry  $6.21. 

Team  Use  Distribution:     Mdse.  $4. 

Journalize,  post  and  take  trial  balance. 

STATEMENT  OF  THE  BUSINESS 

It  is  now  desirable  to  make  a  general  statement  of  the  business,  so  arranged  as  to  show 
-resources  and  liabilities,  and  losses  and  gains  of  the  year.  The  first  step  is  to  take  an  Inven- 
tory of  property  on  hand  like  the  one  recorded  Jan.  1,  of  this  year.  The  student  can  make 
the  required  statement  from  the  data  given  below. 

Merchandise — There  is  on  hand  the  following:  15  tons  timothy  hay  @  $6,  10  tons 
clover  hay  @  $6,  2000  bu.  corn  @'40  cts.,  2300  bu.  oats  @  30  cts.,  370  bu.  wheat  @  90 
cts.,  making  a  total  value  of  $1973. 

Real  Estate — The  various  outlays  for  the  maintainance  of  the  real  estate  have  kept  the 
soil  and  buildings  unimpaired  in  value.  Hence,  items  Nos.  1  to  7  of  the  first  inventory  will 
be  re-entered  at  the  valuation  $20736.50. 

Chattels — The  unclassified  animals  have  increased  in  number  and  value  being  now  worth 
$600. 


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36  FARM  ACCOUNTING 


Dairy — Four  cows  remaining  inventoried  at  the  beginning  of  the  year  Nos,  8,  10,  16, 
and  one  purchased  on  Jan.  14  for  $39.50,  amount  all  told  to  $184.50  less  5%  average  depre- 
ciation, or  $175.27.  Items  Nos.  19  and  20  of  first  inventory  less  12%  depreciation  equal  $88. 
Total  Dairy  inventory  $263.27. 

Teams — Five  horses  Nos.  21,  22,  23,  and  25,  and  one  bought  Feb.  13,  were  charged  at 
$680.  They  are  now  considered  to  have  depreciated  in  value  10%  being  now  worth  $612. 
Machinery  Nos.  27  to  35  inventoried  Jan.  1,  last,  at  $333  have  depreciated  in  value  12%  be- 
ing now  worth  $293.04.    This  gives  a  total  teams  inventory  of  $905.04. 

Hogs — There  are  now  on  hand  60  head,  6000  lb.  worth  $5.50  per  cwt.,  or  $330. 

Poultry— On  hand  worth  $18.20. 

Orchard — Stock  of  trees  growing  worth  $100. 

Small  Fruit — Stock  of  shrubbery  growing  worth  $60. 

After  completing  the  statement  of  resources  and  liabilities  with  difference  showing  net 
worth,  make  a  detailed  list  of  loss  and  gain  accounts  showing  net  gain.  Also  show  this 
gain  added  to  investment  at  opening  giving  present  worth  to  agree  with  the  amount  shown 
in  the  financial  statement  above. 

CLOSING  THE  BOOKS 

Enter  the  inventories  to  the  credit  of  their  respective  accounts  in  the  ledger  (red  ink), 
close  the  accounts  on  pages  3  to  20  into  Loss  and  Gain  (open  Loss  and  Gain  account  on  lower 
half  of  page  20)  and  close  Loss  and  Gain  account  into  proprietor's*  account.  Balance  the 
proprietor's  account,  carry  down  inventories  and  take  a  trial  balance  under  date  of  January  1. 

Remark — The  person  who  has  carefully  watched  the  accounts  of  his  farm  through  the 
period  of  one  year  is  in  position  to  see  the  relative  gains  and  losses  of  different  kinds  of  farm 
industry.  He  should  now  compare  his  results  with  the  results  of  others  as  given  in  the 
records  of  agricultural  experiment  stations,  the  information  contained  in  the  best  agricultural 
papers,  and  results  obtained  by  other  farmers  in  his  own  locality  working  under  similar  con- 
ditions. However,  conditions  are  so  diverse  that  he  must  in  the  main  look  to  his  own  books 
rather  than  to  the  records  of  others  for  his  best  guidance.  A  careful  record  of  cost  and  pro- 
duction, kept  through  a  period  of  years,  will  certainly  pay  many  times  over  for  the  time  and 
attention  given  to  it. 

To  this  should  be  added  the  knowledge  of  the  worth  of  the  business  as  a  business,  and 
the  observance  of  the  appreciation  or  depreciation  of  real  and  personal  property.  These  facts 
tend  toward  suitable  bargains  being  made  in  case  of  purchase  or  sale.  They  also  tend  to- 
ward la  conservation  and  an  average  increase  of  the  general  values  about  him  which  in  the 
current  language  of  the  day  are  termed^ — his  worth. 


PUBLISHERS'  NOTICE 


The  publishers  of  Farm  Accounting  have  in  stock  bound  and  loose  leaf  blank  books  in 
sizes  suited  to  the  requirements  of  farm  bookkeeping.  For  description  and  prices,  inquire 
of  the  school  where  this  course  is  taught,  or  write  to 

GOODYEAR-MARSHALL  PUB.   CO., 

Cedar  Rapids,  Iowa. 


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DUE  AS  STAMPED  BELOW 


APR  9   1989 


[30»n-6,'ll] 


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